Posted - July 29, 2013 - Oil-Gas
Golar LNG Limited has executed a USD $1.125 billion financing
agreement to fund the first 8 of its 13 newbuild vessels and FSRUs. The
facility is divided into three tranches: A term loan of USD $450 million
funded by a consortium of lenders and guaranteed by a 95% Korea Trade
Insurance Corporation ("K-Sure") policy; A term loan of USD $450 million
funded by The Export Import Bank of Korea ("KEXIM"), and; A term loan
of USD $225 million funded by a syndicate of commercial banks (the
"Commercial Tranche"). The tranches have a 12 year repayment profile. In
anticipation of entering into this financing, the Company had
previously entered into interest rate swaps to hedge the majority of the
loan such that the all-in interest cost for the initial seven years of
the facility will be approximately 3.74%.
Commenting on the agreement, Golar's Chairman John Fredriksen said,
"Golar has demonstrated its commitment to LNG Shipping and FSRUs with
its newbuilding programme, on the back of extremely attractive long term
market fundamentals. To have the support of the Korean ECAs to this
extent, without requirement for contracts in place, enables Golar to
take a more flexible and long-term approach to the LNG shipping market.
To see so many of our relationship banks together with the Korea Finance
Corporation and a number of new banks participating in this
oversubscribed facility is both reassuring and welcome. Collectively
they provide a strong footing for the company's ambitious growth plans
and we look forward to their on-going involvement in our business".
Post to be found at:
http://www.scandoil.com/moxie-bm2/news/golar-lng-secures-1125-billion-financing-for-newbu.shtml
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