Awilco LNG Fully Refinances LNG Carriers
Norwegian based fully integrated pure play LNG transportation provider Awilco LNG ASA has announced the successful closing and completion of a 10-year sale/leaseback facility with CCB Financial Leasing Co. Ltd. (CCBFL) for the WilForce and the WilPride LNG carriers.
Both vessels have been sold for a gross consideration per vessel of USD 175.0 million including non-amortizing and non-interest bearing pre-paid charter hire of USD 43.75 million per vessel.
The vessels are chartered back on bareboat basis to wholly owned subsidiaries of the Company for a period of up to 10 years.
Awilco LNG’s finance cost is initially expected to be reduced by about MUSD 7 annually subject to interest rate fluctuations compared to the previous financing arrangement.
The bareboat rate, which includes amortization, is expected at about USD 45,000 per day/per vessel in 2020. The Company has rolling repurchase options starting after three years and repurchase obligations at maturity of the facility at MUSD 37.5 per vessel.
The Company has covered in excess of 60 % of available days in Q1 2020 at an expected TCE of about USD 100,000 per day per vessel, and both vessels are expected available for new employment in February/March 2020.