Golar LNG Ltd has released a statement claiming that it has managed to settle and reduce its exposure under its total return swap (TRS) agreement to 3 million shares down from 3.5 million shares through the direct acquisition of 500 000 shares. Golar LNG now has ownership over these 500 000 shares outright as treasury shares. The company also continues to hold TRS contracts for an additional 3 million shares. The number of outstanding shares in Golar LNG after this transaction has now been reduced to 93 046 663, excluding treasury shares.
Golar LNG claims that it has been putting cash aside as collateral against TRS agreements. The company claims that the cost of unwinding the forward contract in respect of the aforementioned 500 000 shares was funded significantly by a corresponding release from the cash collateral.
Edited from press release by David Rowlands
Read the article online at: https://www.lngindustry.com/liquid-natural-gas/06012016/golar-lng-unwinds-part-of-trs-agreement-1838/