Höegh LNG : Agreement to Transfer a 51% interest in Höegh Grace to Höegh LNG Partners LP
Hamilton, Bermuda, 1 December 2016 - Höegh LNG Holdings Ltd. ("Höegh LNG" or the "Company") today announced an agreement to sell a 51% ownership interest in Höegh LNG Colombia Holding Ltd. ("Grace Holding"), the sole owner of the entities that own and operate Höegh Grace to Höegh LNG Partners LP ("HMLP" or the "Partnership") for a purchase price (the "Purchase Price") of USD 188.7 million, less USD 96.9 million, the pro rata amount of indebtedness related to Höegh Grace that is expected to be outstanding under the credit facility related to the vessel as of the closing date of the transaction (the "Closing Date").
In addition, HMLP has the option at any time on or prior to 28 February 2017 to purchase the remaining ownership interest in Grace Holding (the "Option"). To the extent the Partnership does not exercise the Option in full by 28 February 2017, the Partnership will retain a right of first offer with respect to the remaining interest in Grace Holding.
The Purchase Price will be subject to certain post-closing adjustments for net working capital. In addition, the Purchase Price will be increased, pro rata, to the extent that HMLP exercises all or any portion of the Option on or prior to the Closing Date. HMLP intends to settle the Purchase Price with cash. At HMLP's election, it may settle the Purchase Price and any purchase pursuant to the Option, with a combination of cash and one or more promissory notes from HMLP payable to Höegh LNG in an aggregate amount of up to USD 50 million (the "Seller's Credit"). If issued, the Seller's Credit will mature on 1 January 2021 and bear interest at an annual rate of 8%.
The transaction is expected to be completed by the end of January 2017 and is subject to customary closing conditions and the acceptance of Höegh Grace by its charterer, Sociedad Portuaria El Cayao S.A. E.S.P. ("SPEC"), expected December 2016.
The transaction has been approved by the Board of Directors of the Company as well as the Board of Directors of HMLP.
Sveinung J.S. Støhle, President and CEO of Höegh LNG, stated "We are delighted to have reached an agreement with HMLP for the second drop-down to the MLP. Höegh LNG has a leading position in the FSRU segment and a strong pipeline of drop-down candidates, making HMLP the main vehicle for funding our FSRU expansion as we continue to see very strong market growth in the coming years for our floating LNG import solutions."
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About Höegh LNG:
Höegh LNG provides floating energy solutions and operates world-wide with a leading position as owner and operator of floating LNG import terminals; floating storage and regasification units (FSRUs), and is one of the most experienced operators of LNG Carriers (LNGCs). Höegh LNG's vision is to be the industry leader of floating LNG solutions and the strategy is to continue to focus growth plans on the FSRU market, with the objective of securing long-term contracts with strong counterparts at attractive returns. Höegh LNG is a Bermuda based company with established presence in Norway, Singapore, the UK, USA, Indonesia, Lithuania, Egypt and Colombia. The company employs approximately 110 office staff and 500 seafarers.
Contacts:
Sveinung J. S. Støhle, President and Chief Executive Officer, Telephone +47 975 57 402
Steffen Føreid, Chief Financial Officer, Telephone + 47 975 57 406
This information is subject of the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act or the Continuing Obligations of Oslo Børs