Golar LNG Ltd has announced that it has received an underwritten financing commitment for the December 2015 delivering newbuild FSRU Golar Tundra (Tundra). Based on the current cost of the Tundra, the facility of up to US$216 million, to be provided by China Merchants Bank Leasing, has a 16 year amortisation profile, will fund the FSRU on a charter free basis, and, at current 10 year interest rate swap levels, will have an all-in cost of less than 6%. Subject to an acceptable charter, Golar expects the facility amount and profile to increase. The facility also provides for the Tundra's eventual sale to Golar LNG Partners LP (Golar Partners or the Partnership). On the current charter free basis the facility will finance a minimum of US$50 million more than the final delivery payment to the ship yard thereby releasing this additional cash to Golar.
As part of this financing commitment China Merchants Bank Leasing will also provide a parallel facility to refinance the Golar Partners owned FSRU, Golar Eskimo. Upon drawdown, this new facility will refinance the vessels existing US$156 million debt and provide approximately US$100 million of additional finance that is expected to be used to repay the remaining US$100 million balance of the Golar Eskimo vendor financing facility provided by Golar. This joint financing for Tundra and Eskimo will therefore release approximately US$150 million in cash that can be used to augment Golar's existing liquidity position.
Edited from press release by Angharad Lock
Read the article online at: https://www.lngindustry.com/floating-lng/23102015/golar-receives-financing-commitment-for-fsru-tundra-1517/