Advanced shipping finance

ADVANCED SHIPPING FINANCE
INDIVIDUAL COURSEWORK (WEIGHTING 100%)
Take the August 2022 Investor Presentation of Dynagas LNG Partners
(http://www.dynagaspartners.com/upload_presentations/DLNG_q1_2022.pdf) ,
(NYSE Ticker: “DLNG”) & the Annual Report 2021
(http://www.dynagaspartners.com/upload_earnings/dlng20f2021.pdf).
After reading thoroughly the listed company’s annual report and presentation you are requested to answer the following:

Exercise 1
Provide business highlights presented at Investor Presentation June 2022, fleet profile (capacity, type of vessels, age, etc) and chartering strategy from Annual Report 2021. Also give a short review on how Dynagas LNG Partners management is focused on maintaining an HSWE framework for company operations detailed in their website. – 20%

Exercise 2
• Identify the factors affecting the financial results of Dynagas operations, Investor Presentation June 2022 and elaborate the international sanctions risk factor. – 10%
• Present the financial results of operations for the year ended December 31, 2021 compared to the year ended December 31, 2020. – 10%

Exercise 3
Using the company’s Investor Presentation of June 2022, analyze its financial strategy and present/compare with figures company’s historical financial highlights from 2019 till 2021.- 15%

Exercise 4
Indicate the long-term debt of Dynagas between 2020 and 2021, describe credit facilities, and debt payments due. -25%

Exercise 5
Suppose that the company is willing to expand and finance the purchase of one 10-year old LNG vessel which is planned to be delivered to the company within January of 2023. The vessel will be acquired for an amount of USD 120 mln and the sources of financing will be 20% from the company’s liquidity, 40% from the issuance of new common shares and 40% from the issuance of bank debt.
Assuming that the cost of debt is fixed at 3%, the repayment profile is 15 years, the loan tenor is 10 years and the principal installments are paid quarterly:

• Determine the loan amount and calculate the balloon payment at the end of the tenor. – 10%
• Construct the debt amortization table. – 10%

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