Golar LNG’s CoolCo wraps up $570 million loan

Tor Olav Troim-led Golar LNG is making progress with the formation of its new LNG shipping firm CoolCo.

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.

Golar said CoolCo would have an initial market capitalization of about $375 million while the firm would retain a shareholding of a minimum of $125 million in the new company.

As part of the transaction, CoolCo plans to raise around $250 million of external equity through a private placement of equity.

EPS has pre-subscribed and guaranteed an allocation of a minimum of $150 million in the contemplated private placement, making EPS the largest shareholder of CoolCo.

Proceeds from the private placement, together with the debt facilities, will go towards funding the acquisition of the LNG carriers and for CoolCo’s working capital and general corporate purposes.

CoolCo will immediately list on the Oslo OTC exchange and expects to list on Euronext Growth Oslo during February 2022.

Also, CoolCo would target an additional listing on an internationally recognized stock exchange during 2022, Golar said in an update on Thursday.

$570 million facility

Golar said CoolCo has completed a credit approved and committed bank term sheet for a new sustainability-linked $570 million bank facility.

This facility would finance the acquisition of 6 of the 8 carriers that CoolCo would acquire from Golar, it said.

The existing lease financing on two vessels, Golar Ice and Golar Kelvin, will remain and be transferred to CoolCo.

According to Golar, the total debt on CoolCo’s assets would reach about $810 million at inception.

Furthermore, Golar said that CoolCo has completed agreements in principle for a total consideration of $5 million.

Under these deals, CoolCo will acquire the commercial and technical organization associated with the operation of Golar’s owned and operated shipping and FSRU assets.

Golar added it expects the formation of CoolCo to conclude within the first quarter of this year, subject to market conditions.

Most Popular

Williams launches Transco pipeline expansions

US natural gas pipeline operator Williams has launched two fully contracted expansions of the existing Transco pipeline to meet growing domestic demand and LNG exports.

Update: Shell’s LNG Canada receives LNG cargo

Shell’s LNG Canada has received a cargo of liquefied natural gas as part of the commissioning and start-up phase.

DOE gives further boost to US LNG exports

The US Department of Energy (DOE) has removed a regulatory barrier that required liquefied natural gas (LNG) projects to start export within seven years of receiving regulatory approval.

More News Like This

EPS adds new LNG-powered PCTC to its fleet

Singapore’s Eastern Pacific Shipping took delivery of another LNG-fueled pure car and truck carrier in China.

Golar seals $1.2 billion leasing deal for FLNG Gimi

Floating LNG player Golar LNG has entered into lease agreements with a consortium of Chinese leasing companies for the refinancing of the existing FLNG Gimi debt facility.

Indonesia’s Soechi Lines buys LNG carrier

Indonesia's Soechi Lines has completed the acquisition of one liquefied natural gas (LNG) carrier. The firm did not reveal the name of the vessel, but it is said to be the 2003-built steam turbine LNG carrier, Golar Arctic.

EPS, DongHwa Entec in LNG fuel move

Singapore-based Eastern Pacific Shipping and South Korean equipment supplier DongHwa Entec have joined forces on the development of a high-pressure compressor for LNG-powered vessels.