Oslo-based Höegh LNG said it has agreed to sell a 51 percent ownership interest in FSRU Höegh Grace to Höegh LNG Partners for US$188.7 million.
The purchase price excludes the $96.9 million pro rata amount of indebtedness related to Höegh Grace that is expected to be outstanding under the credit facility related to the vessel as of the closing date of the transaction, Höegh LNG said in its statement on Thursday.
In addition, HMLP has the option at any time on or prior to 28 February 2017 to purchase the remaining ownership interest in Grace Holding, the sole owner of the entities that own and operate the FSRU Höegh Grace.
In case the Partnership does not exercise the option in full by 28 February 2017, it will retain a right of first offer with respect to the remaining interest in Grace Holding.
The transaction is expected to be completed by the end of January 2017 and it has been approved by the board of directors of the company as well as the board of directors of HMLP.
Höegh LNG Partners selling shares to fund FSRU purchase
Höegh LNG Partners on Thursday offered 6,000,000 common units priced at $17.6 per unit in order to fund the purchase of the FSRU Höegh Grace.
The offering was upsized to 6,000,000 common units from the original offering size of 5,500,000 common units.
The underwriters have been granted a 30-day option to purchase up to an additional 900,000 common units and the proceeds from any exercise of the underwriters’ option to buy additional units may be used to acquire additional ownership in the FSRU.
LNG World News Staff