Hoegh LNG sells remaining Hoegh Grace stake to MLP

Image courtesy of Höegh LNG

Norway-based floating LNG giant Höegh LNG has agreed to transfer the remaining 49% ownership interest in Höegh Grace FSRU to its master limited partnership, Höegh LNG Partners.

Under the deal, Höegh LNG Partners will buy a 49% stake in Höegh LNG Colombia (Grace Holding), the owner and operator of Höegh Grace, for a  price of $172.5 million, less $86.6 million in pro-rata indebtedness related to the FSRU expected to be outstanding at the closing date of the transaction.

The MLP intends to settle the purchase price with a combination of cash at hand and a drawing under its revolving credit facility granted by Höegh LNG.

The purchase price will be subject to certain post-closing adjustments for net working capital.

Höegh LNG Partners purchased the initial 51% ownership interest in Grace Holding in January 2017.

The transaction has been approved by the board of directors of both companies and HMLP’s conflicts committee.

The transaction is expected to be completed by the beginning of January 2018.

“We are delighted to have reached an agreement with HMLP for the third drop-down to the MLP. Funded by a well-received offering of HMLP’s perpetual preferred equity earlier this autumn, the transaction demonstrates Höegh LNG’s diversified capital markets access,” said Sveinung J.S. Støhle, President and CEO of Höegh LNG.

“With a leading position in the FSRU market, Höegh LNG remains committed to provide HMLP with further growth opportunities through accretive drop-downs of FSRUs on long-term contracts,” said Støhle.

Share this article

Follow LNG World News


<< Sep 2019 >>
26 27 28 29 30 31 1
2 3 4 5 6 7 8
9 10 11 12 13 14 15
16 17 18 19 20 21 22
23 24 25 26 27 28 29
30 1 2 3 4 5 6

6th Mozambique Gas Summit & Exhibit

This year’s edition will have a revamped programme for attendees.

read more >

Offshore Energy Exhibition and Conference 2019

The three-day event includes an exhibition where an expected 600+ supply chain companies will showcase their products and services.

read more >

LNGgc London

LNGgc is a fantastic way of raising attendees’ company profile within this market and creating greater awareness of their brand…

read more >

5th CWC China LNG & Gas International Summit & Exhibition

5th CWC China LNG & Gas International Summit & Exhibition will return 16 – 17 October 2019, bringing together the key players…

read more >