Awilco closes LNG carrier pair refinancing
Norwegian based LNG transportation provider Awilco said it has closed and completed the 10-year sale/leaseback facility with CCB Financial Leasing for its LNG carriers WilForce and WilPride.
Both vessels have been sold for a gross consideration of $175.0 million per vessel including non-amortizing and non-interest bearing pre-paid charter hire of $43.75 million per vessel.
The vessels are chartered back on bareboat basis to wholly-owned units of the company for a period of up to 10 years.
Awilco LNG’s finance cost is initially expected to be reduced by about $7 million annually subject to interest rate fluctuations compared to the previous financing arrangement. The bareboat rate, which includes amortization, is expected at about $45,000 per day/per vessel in 2020.
The company has rolling repurchase options starting after three years and repurchase obligations at maturity of the facility at $37.5 million per vessel.
The company has covered in excess of 60 percent of available days in the first quarter of 2020 at an expected TCE of about $100,000 per day per vessel, and both vessels are expected available for new employment in February/March 2020.