16 November 2017
International law firm Watson Farley & Williams (“WFW”) advised Höegh LNG Ltd (“Höegh LNG”) on the US$230m debt financing for its eighth floating storage and regasification unit (“FSRU#8”) currently under construction at Hyundai Heavy Industries (“HHI”) in South Korea.
The facility comprises a twelve-year export credit agency term loan of up to US$150m backed by Garantiinstituttet for Eksportkreditt and Eksportkreditt of Norway, and a five-year non-amortising commercial bank loan of up to US$80m funded by ABN AMRO Bank, Danske Bank, Nordea and Swedbank. ABN Amro also acted as Agent and Security Agent. The facility is available to fund 65% percent of the FSRU’s delivered cost with no employment requirement, increasing to 75% upon securing long-term employment.
Oslo-based Höegh LNG currently has seven FSRUs in operation and three FSRUs under construction at HHI and Samsung Heavy Industries. FSRU#8 has a regasification capacity of 750 MMscf/day and is due to be delivered in the first quarter of 2018.
Lindsey commented: “This was a complex transaction that provides Höegh with the flexibility to ‘drop down’ assets in the future into the Höegh Master Ltd Partnership. We are pleased that our long-standing client Höegh LNG chose to work with WFW on this important transaction that enables it to diversify its funding sources while building up its FSRU business; this is testament to the firm’s standing as the ‘go-to’ firm for financing solutions in the maritime space”.