Höegh LNG secures $80 mln loan

Image courtesy of Höegh LNG

Norway-based floating LNG giant Höegh LNG said it has secured $80 million to refinance an existing bond loan maturing in June 2020. 

The company said it has received commitment letters for a revolving credit facility with security in the company’s common units in Höegh LNG Partners.

The facility is provided by three of the company’s relationship banks and besides refinancing an existing loan it will also be used for general corporate purposes.

The facility has a tenor of 2 years and an estimated interest rate of about 5.2 percent.

Sveinung Støhle, CEO & president of Höegh LNG stated, “The facility provides Höegh LNG with flexible financing, in line with the company’s financial strategy, while at the same time reducing the financial costs.”

In a separate statement, Höegh LNG Holdings, has mandated Danske Bank, DNB Markets, Nordea, Swedbank and ABN AMRO to arrange a series of fixed income investor meetings, which could be followed by a 5-year NOK denominated bond issue.

Subject to successful issuance of new bonds, the company plans to exercise the call option in whole or in parts to repay HLNG02 bonds at the prevailing call price.

The proceeds from the potential bond issue will be used for refinancing of existing debt and general corporate purposes.

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