Höegh LNG secures flexible and cost-efficient financing
Höegh LNG Holdings Ltd. has received commitment letters for a revolving credit facility of up to USD 80 million with security in the company’s common units in Höegh LNG Partners LP, the company said in its release.
The facility is provided by three of the company’s relationship banks and will be used to refinance part of the HLNG02 bond loan which matures in June 2020 and general corporate purposes. The facility has a tenor of 2 years and an estimated interest rate of about 5.2% for drawn amounts based on the current floating interest rates. The facility is subject to final documentation, which is expected to be completed during first quarter of 2020.
Sveinung J. S. Støhle, CEO & President of Höegh LNG stated: “This revolving credit facility proves the importance of Höegh LNG’s strong and long-lasting relationship with our core banks. The facility provides Höegh LNG with flexible financing, in line with the company’s financial strategy, while at the same time reducing the financial costs.”