Photo: Illustration; Courtesy of Golar LNG

CoolCo buys first of eight LNG tankers from Golar

The newly formed shipping firm CoolCo has purchased the first of the eight LNG tankers from Bermuda-based shipper Golar LNG.

CoolCo buys first of eight LNG tankers from Golar
Illustration; Courtesy of Golar LNG

In December, Golar LNG announced the separation of its eight TFDE LNG tankers into the new company called Cool Company. Thus, Golar wanted to separate its shipping business and simplify its corporate structure.

The plan was for CoolCo to acquire Golar’s eight tri-fuel diesel-electric LNG carriers. Besides Golar LNG, Eastern Pacific Shipping also took on an active role in the further development of CoolCo.

The parties agreed on the final terms for the first acquisition on 26 January 2022.

CoolCo raised the funds required to finance the acquisition. It had done so by way of the conclusion of a $570 million senior secured bank facility. It also raised $275 million in gross proceeds in a private placement of new shares announced on 28 January 2022.

The first completion covered all of the shares in Golar’s subsidiary, Golar Hull M2022, which is the owner of the LNG tanker Golar Crystal.

The purchase price was financed by a drawing under CoolCo’s senior secured bank facility, a cash payment to Golar, and the subscription by Golar of 1,562,500 new common shares of $1 par value in Cool at a subscription price of $10.

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After the issuance of these shares, there are now 29,072,500 shares in issue in CoolCo.

The transfers of title to the shares in the remaining seven vessel subsidiaries of Golar which Cool has agreed to buy are to be completed in the short term.

CoolCo will also buy the commercial and technical organization linked to the operation of Golar’s shipping and FSRU assets. Thus, it would become a fully integrated operating platform with the capacity for fleet growth.