Hoegh LNG's Bond Issue
Aiswarya Lakshmi
Friday, May 29, 2015
Hoegh LNG (HLNG) has successfully completed the issuance of a USD 130 million senior unsecured bond in the Nordic bond market with maturity date expected to be 5 June 2020. The bond issue will be swapped from floating to fixed interest rate.
The bond issue was oversubscribed. The net proceeds from the bond issue shall be used for general corporate purposes. An application will be made for the bonds to be listed on Oslo Børs.
Danske Bank Markets, DNB Markets, Nordea Markets, Pareto Securites and Swedbank Norway have acted as Joint Lead Managers for the bond issue.
The company said yesterday it had signed a 20-year floating storage and regasification unit (FSRU) contract in Chile, with EBITDA value of USD36 million per year.
The company had been expected to tap the bond market since 21 May, when Höegh indicated it might increase its pace of investment in the sector.
"The drop in oil prices have led to lower energy and LNG prices, which, together with a significant increase in LNG supply over the next three years, has led to higher demand for LNG and consequently FSRUs to import the LNG," said the company that has five FSRUs in service and two on order.
HLNG provides floating energy solutions and operates world-wide with a leading position as owner and operator of floating LNG import terminals; Floating storage and regasification units (FSRUs).