NYSE-listed Höegh LNG Partners LP has agreed to acquire a 51% ownership interest in the entities that own and operate the floating storage and regasification unit (FSRU) Höegh Grace, and contribute the acquired ownership interest to the group’s operating company.
The vessel’s purchase price will be USD 188.7 million, less USD 96.9 million, the pro rata amount of indebtedness related to the Höegh Grace that is expected to be outstanding under the credit facility related to the vessel as of the closing date of the acquisition, Höegh LNG Partners said.
In addition, Höegh LNG Partners has the option, at any time on or prior to February 28, 2017, to purchase the remaining ownership interest in Höegh LNG Colombia Holding, the sole owner of Höegh LNG FSRU IV Ltd. and Höegh LNG Colombia S.A.S., the entities that own and operate the Höegh Grace.
If the group does not exercise the option in full by February 28, 2017, it will retain a right of first offer with respect to the remaining interest in Höegh LNG Colombia 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 the Höegh Grace by its charterer.
Höegh LNG Partners intends to settle the purchase with cash. The group has priced a public offering of 6,000,000 common units at a public offering price of USD 17.60 per unit, the proceeds of which will be used to fund the acquisition of the ownership stake in the Höegh Grace.
The Höegh Grace was constructed by Hyundai Heavy Industries Co., Ltd. and delivered on March 30, 2016. The vessel is scheduled to service a new LNG import terminal in Cartagena, on the Atlantic coast of Colombia, under an International Leasing Agreement with Sociedad Portuaria El Cayao, which is expected to commence in December 2016.
The Höegh Grace charter has a term of 20 years.