Awilco LNG ASA has announced the successful closing and completion of a 10-year sale/leaseback facility with CCB Financial Leasing Co. Ltd. (CCBFL) for the WilForce and the WilPride LNG carriers.
Both vessels have been sold for a gross consideration per vessel of US$175.0 million including nonamortising and non-interest bearing pre-paid charter hire of US$43.75 million per vessel. The vessels are chartered back on bareboat basis to wholly owned subsidiaries of the company for a period of up to 10 years.
Awilco LNG’s finance cost is initially expected to be reduced by about US$7 million annually subject to interest rate fluctuations compared to the previous financing arrangement. The bareboat rate, which includes amortisation, is expected at about US$45 000 per day/per vessel in 2020. The company has rolling repurchase options starting after three years and repurchase obligations at maturity of the facility at US$37.5 million per vessel.
The company has covered in excess of 60% of available days in 1Q20 at an expected TCE of about US$100 000 per day per vessel, and both vessels are expected available for new employment in February/March 2020.