Tor Olav Troim-led Golar LNG continues to make progress with the formation of its new LNG shipping firm CoolCo and has launched a $250 million private placement.
Golar revealed in December it was joining forces with Idan Ofer’s Eastern Pacific Shipping for a new development that includes separating its LNG shipping business and creating Cool Company or CoolCo.
The deal will result in CoolCo acquiring Golar’s 8 TFDE LNG carriers. The vessels, built between 2013 and 2015, have each a capacity of about 160,000 cbm.
Earlier this month, Golar said that CoolCo had completed a credit approved and committed bank term sheet for a new sustainability-linked $570 million bank facility.
In an update on Thursday, Golar revealed that CoolCo has decided to launch a book building process of a private placement of $250 million based on investor feedback.
The proceeds would, together with a contemplated debt refinancing, go towards financing the acquisition of the 8 LNG carriers but also towards providing CoolCo with working capital to position the company for further growth, it said.
EPS has pre-subscribed and guaranteed an allocation of minimum $150 million in the contemplated placement, Golar said.
$10 per share
The placement would consist of a primary offering with gross proceeds of $250 million by the issuance of new shares, Golar said, adding that the price would be $10 per share.
Also, the book building period in the placement would start on January 27 at 09:00 CET and close on January 28 at 16:30 CET, the firm said.
The managers and the company may, however, at any time resolve to shorten or extend the book building period.
The following parties have entered customary lock up arrangements with the managers in connection with the private placement: the company, members of the company’s senior management and board and Golar and EPS, it said.
Subject to successful completion of the placement, CoolCo would apply to list the shares of the company on Euronext Growth Oslo during the first quarter of this year 2022.
The shares would be listed on the N-OTC immediately following completion of the placement, the firm said.