Höegh LNG Partners LP (‘HMLP’ or the ‘Partnership’) has announced that it plans to offer Series A Cumulative Redeemable Preferred Units (‘Series A Preferred Units’), representing limited partner interests, in a public offering. The Partnership expects to grant the underwriters a 30-day option to purchase additional Series A Preferred Units.
The Partnership intends to use the net proceeds from the offering and any exercise of the underwriters' option to purchase additional Series A Preferred Units to repay the approximately US$34.4 million outstanding under the 8% seller's credit note related to the Partnership's acquisition of the FSRU Höegh Gallant. The remainder of the net proceeds will be used for general partnership purposes, which may include the repayment of additional indebtedness or the funding of acquisitions (including the potential purchase of an additional 23.5% interest in the joint ventures that own and operate the FSRUs Neptune and GDF Suez Cape Ann and/or the potential purchase of the 49% interest in the owner of the entities that own and operate the FSRU Höegh Grace) or other capital expenditures.
Morgan Stanley, UBS Investment Bank and Stifel are acting as the joint bookrunners in connection with the offering.
The Partnership owns and operates FSRUs and associated LNG infrastructure assets under long-term charters. The Partnership is structured as a master limited partnership. The Partnership intends to apply to have the Series A Preferred Units listed on the New York Stock Exchange.
Read the article online at: https://www.lngindustry.com/liquid-natural-gas/29092017/hoegh-lng-public-offering-announcement/