Höegh LNG announces agreement to transfer the FSRU Höegh Gallant to Höegh LNG Partners
Höegh LNG Holdings Ltd. has announced an agreement to sell the entity that owns the FSRU Höegh Gallant to Höegh LNG Partners LP for a purchase price of USD 370 million, subject to certain post-closing purchase price adjustments. The existing debt related to the Höegh Gallant is approximately USD183 million and will continue to be outstanding. The purchase price will be settled by the cancellation of a USD140 million demand note from HMLP to Höegh LNG and the issuance of a seller's credit of USD47 million, due in 18 months with an interest rate of 8% per annum. The transaction is expected to be completed by the end of September 2015 and is subject to customary closing conditions.
Höegh Gallant is operating under a charter with the government-owned Egyptian Natural Gas Holding Company ("EGAS") that expires in April 2020. Additionally, HMLP has the right to cause HLNG to charter the vessel from the expiry of the EGAS charter until July 2025 at a rate equal to 90% of the rate payable pursuant to the current charter.
The transaction has been approved by the Board of Directors of the Company as well as the Board of Directors of Höegh LNG Partners.
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). The Company has developed low-cost solutions for floating liquefaction terminals (FLNG) 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 its growth plans on the FSRU and the FLNG 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 Oslo, Singapore, London, Miami, Jakarta, Klaipeda and Cairo. The company employs approximately 95 office staff and 500 seafarers
