Höegh LNG: Amendment and restatement of the FSRU Independence debt facility and a new interim LNGC timecharter
Hamilton, Bermuda, 26 March 2020 - Höegh LNG Holdings Ltd. (“Höegh LNG” or the “company”) has received a commitment letter from five of the company’s relationship banks for an amendment and extension and USD 45 million upsizing of the debt facility for the FSRU Independence.
The amendment and extension covers the Independence debt facility’s commercial tranche of USD 61 million maturing in May 2020. In the amendment and extension facility, the commercial tranche will be upsized by USD 45 million to USD 106 million with maturity in December 2024. The Independence debt facility also consists two tranches guaranteed by export credit agencies which remain unchanged, save for a reduction of their respective funding margins. Consequently, the blended amortization profile is stretched out and the funding cost has been significantly reduced, to an estimated blended average interest rate of about 4.0% for the full facility.
The additional USD 45 million will be available for general corporate use. The commitment is subject to final documentation, which is expected to be completed during second quarter of 2020.
New interim LNGC timecharter
Further, a subsidiary of the company has entered into an interim LNGC timecharter with an Asian-based trading house, for a period of around 7 months from mid-2020. The rate reflects the current term market for large size DFDE LNG carriers. Either Höegh Gannet or Höegh Gallant will be deployed for this contract. This charter and other short-term charters concluded increase the group’s contract coverage for 2020 to around 92%.
Sveinung J. S. Støhle, CEO & President of Höegh LNG stated: “I am very pleased to see that despite the Corona crisis and turbulent markets, the company has successfully increased the facility amount for FSRU Independence, and at the same time reduced the funding margin, which demonstrates Höegh LNG’s market position and the company’s strong and long-lasting relationship with our core banks. The new LNGC charter confirms Höegh LNG’s ability to secure firm interim business for its FSRU assets”.
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Contacts:
Sveinung J. S. Støhle, President and Chief Executive Officer, Telephone +47 975 57 402
Håvard Furu, Chief Financial Officer, Telephone +47 991 23 443
Knut Johan Arnholdt, VP IR and Strategy, Telephone +47 922 59 131
About Höegh LNG:
Höegh LNG 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. Its strategy is to develop the business through an extended service offering, with large-scale FSRUs as the main product, and focus on establishing long-term contracts with attractive risk-adjusted returns involving credible counterparts. The company is publicly listed on the Oslo stock exchange under the ticker HLNG, and owns approximately 46% of Höegh LNG Partners LP (NYSE:HMLP). Höegh LNG is a Bermuda based company with established presence in Norway, Singapore, the UK, USA, China, Indonesia, Lithuania, Egypt, Colombia and the Philippines. The group employs approximately 175 office staff and 600 seafarers.