CoolCo announces exercise of purchase option for two 2-stroke LNG carrier newbuilds
Cool Company Limited has exercised its option to acquire two newbuild 2-stroke LNG carriers from affiliates of EPS Ventures Ltd (“EPS”), according to the company's release.
The state-of-the-art MEGA LNG carriers are scheduled to deliver from Hyundai Samho Heavy Industries (“HHI”) in Korea in September and December of 2024. The newbuilds have a cargo capacity of 174,000 cbm, a GTT Mark III Flex Membrane cargo tank system, reliquification, air-lubrication and shaft generators. Each of the two newbuilds is being acquired under the pre-existing purchase option price of approximately $234 million, a discount of approximately 10% to current quoted market value for comparable newbuild vessels. The initial exercise price is approximately $57 million per vessel, while approximately $134 million of the remaining $177m is due upon delivery of each of the vessels. The expected closing date and payment of the option exercise is Monday July 3, 2023.
The newbuilds, to be named Kool Tiger and Kool Panther, are expected to be funded with a combination of cash on hand, including cash that was recently released from the sale of the Golar Seal, and debt financing for which CoolCo has received a commitment letter from a financing institution. This debt financing, which is subject to customary approvals, is on a fixed rate per day basis for 10 years with a minimum loan-to-value of 80% and an implied interest rate of around 6%.
CoolCo is an owner, operator and manager of fuel-efficient liquefied natural gas (“LNG”) carriers. Using its integrated, in-house vessel management platform, CoolCo provides charterers and third-party LNG vessel owners with modern and flexible management and transportation solutions, delivering a lesser-emitting form of energy that supports decarbonization efforts, economic growth, energy security, and improvements in quality of life.
