Höegh bumps FSRU Independence funds, nabs LNG carrier deal
- Business & Finance
Höegh LNG has secured an extension and upsizing of its FSRU Independence debt facility as well as an interim time charter for one of its vessels.
The company received a commitment letter from five of its relationship banks for the amendment and extension of the Independence’s $61 million debt facility maturing in May 2020, Höegh LNG said in its statement on Thursday.
Under the new terms, the commercial tranche will be upsized by $45 million to $106 million with maturity in December 2024, with the additional funds available for general corporate use.
The Independence debt facility also consists of two tranches guaranteed by export credit agencies which remain unchanged, save for a reduction of their respective funding margins.
Further, a unit of the company has entered into an interim LNG carrier time-charter with an Asian-based trading house, for a period of around seven months from mid-2020.
The rate reflects the current term market for large size DFDE LNG carriers, the company said noting that either Höegh Gannet or Höegh Gallant will be deployed for this contract.
This charter and other short-term charters concluded increase the group’s contract coverage for 2020 to around 92 percent, the statement reads.