Avenir LNG secures funds for small-scale newbuilds

Avenir LNG, a joint venture set up by Stolt-Nielsen Limited, Golar LNG and Höegh LNG has completed a private placement raking in $110 million as the capitalization of the company starts. 

The private placement followed the combined $182 million investment in Avenir LNG made by Stolt-Nielsen Limited, Golar LNG and Höegh LNG.

The funds will be contributed as cash and equity-in-kind and will partly fund the construction of four 7,500-cbm small-scale LNG carriers currently under construction at Keppel Singmarine in Nantong, China, Avenir LNG said.

Funds will also be used for the two 20,000-cbm small-scale LNG carriers on order from Sinopacific Offshore Engineering in Nantong, China and 80 percent ownership in an LNG terminal and distribution facility under development in the Italian port of Oristano, Sardinia.

Avenir LNG said the placement was split into two tranches, one consisting of 99,000,000 new shares that were subscribed for by Stolt-Nielsen, that has already closed and the second consisting of 11,000,000 new shares placed with a group of institutional and other professional investors.

Units were priced at $1 per share and the second tranche closed on November 13.

Following the private placement, Stolt-Nielsen LNG will hold 45 percent of the shares, each of Golar LNG Limited and Höegh LNG Holdings Limited will hold 22.5 percent while the remainder will be initially held by the subscribers in the second tranche (Tranche B).