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

Samsung Heavy cancels LNG carrier contract with Russia’s Zvezda

South Korean shipbuilding giant Samsung Heavy Industries has terminated contracts for 10 ice-class Arc7 LNG carriers and seven shuttle tankers with Russia's Zvezda.

Golden Pass LNG construction continues to advance

Energy giants QatarEnergy and ExxonMobil, along with their contractors, continue to advance construction on their massive Golden Pass LNG export facility in Texas.

Woodside inks non-binding LNG supply deal with Petronas

Australia's Woodside has signed a non-binding heads of agreement with Malaysia's Petronas to supply the latter with liquefied natural gas (LNG) from its global portfolio. The deal may include supplies from Woodside's Louisiana LNG project in the US.

More News Like This

EPS in 400th LNG bunkering operation

Singapore’s Eastern Pacific Shipping has completed its 400th ship-to-ship LNG bunkering operation, as the company’s fleet of LNG-fueled ships continues to expand.

Golar chairman says FLNG industry set for ‘massive’ growth

Golar LNG will continue to expand its fleet of floating LNG production units in an industry set for "massive" growth, according to Golar LNG's chairman, Tor Olav Trøim.

Golar plans new FLNG order in 2025

Floating LNG player Golar LNG is working with shipyards to order one or more floating LNG production units in 2025.

EPS boosts stake in CoolCo

CoolCo's largest shareholder, Eastern Pacific Shipping, has further increased its shareholding in the LNG carrier operator.