Höegh LNG Secures USD 80 Mn Loan

Norwegian shipowner Höegh LNG Holdings Ltd. has received commitment letters for a revolving credit facility of up to USD 80 million with security in the company’s common units in Höegh LNG Partners LP.

The company said that the loan was provided by three of the company’s relationship banks. The facility has a tenor of 2 years and an estimated interest rate of about 5.2% for drawn amounts based on the current floating interest rates.

“This revolving credit facility proves the importance of Höegh LNG’s strong and long-lasting relationship with our core banks. 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,” Sveinung J. S. Støhle, CEO & President of Höegh LNG said.

Höegh LNG plans to use the proceeds to refinance part of the HLNG02 bond loan which matures in June 2020 and general corporate purposes.

The facility is subject to final documentation, which is expected to be completed during the first quarter of 2020.

Separately,  Höegh LNG Holdings has mandated Danske Bank, DNB Markets, Nordea, Swedbank and ABN AMRO to arrange a series of fixed income investor meetings commencing today. Subject to inter alia market conditions, a NOK denominated 5-year senior unsecured bond issue may follow.

The proceeds from the potential bond issue are intended to be used to refinance debt and general corporate purposes.