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Höegh LNG to transfer interest in Höegh Grace

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LNG Industry,

Höegh LNG Holdings Ltd has announced an agreement to sell a 51% ownership interest in Höegh LNG Colombia Holding Ltd (the sole owner of the entities that own and operate Höegh Grace) to Höegh LNG Partners LP (HMLP) for a purchase price of US$188.7 million, less US$96.9 million, the 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 Partners also has the option at any time on or prior to 28 February 2017 to purchase the remaining ownership interest in Grace Holding.

The transaction is expected to be completed by the end of January 2017 and is subject to customary closing conditions and the acceptance of Höegh Grace by its charterer, Sociedad Portuaria El Cayao S.A. E.S.P., expected this month.

The transaction has been approved by the Board of Directors of Höegh LNG and Höegh LNG Partners.

Sveinung J.S. Støhle, President and CEO of Höegh LNG, said: "We are delighted to have reached an agreement with HMLP for the second drop-down to the MLP. Höegh LNG has a leading position in the FSRU segment and a strong pipeline of drop-down candidates, making HMLP the main vehicle for funding our FSRU expansion as we continue to see very strong market growth in the coming years for our floating LNG import solutions."

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