Dorian LPG Lands Debt Financing for Newbuilding Program
NYSE-listed owner and operator of Very Large Gas Carriers (VLGC) Dorian LPG has received commitments for up to USD 761 million of debt financing for its VLGC newbuilding program.
The financing has four separate tranches. USD 250 million of commercial debt financing is being provided by ABN AMRO; ING Bank; DVB Bank; Citibank; and Commonwealth Bank of Australia.
USD 205 million of financing is being provided directly by The Export Import Bank of Korea (KEXIM), and the remaining USD 306 million of financing is being provided under tranches guaranteed by KEXIM (USD 203 million) and insured by the Korea Trade Insurance Corporation (K-sure) (USD 103 million).
The debt financing will be secured by, among other things, 18 of the company’s VLGC newbuildings, and will represent a loan-to-contract cost ratio of approximately 55%.
Dorian LPG expects to close the transaction in February.
Dorian’s Chairman, John Hadjipateras, said: “These commitments represent a key strategic milestone for our organization as this financing will complete the funding for our newbuilding program with no need to raise any additional debt or equity to take delivery of our fleet of new ECO VLGCs.”