Regional: Golar LNG Partners buys FSRU assets from parent firm
Thursday, October 20 2011 - 03:27 AM WIB
Nasdaq-listed Golar LNG Partners said it will buy Golar Freeze, which owns floating storage and regasification units (FSRUs), from its parent firm Golar LNG Ltd for US$330 million.
The transaction is expected to close before the end of October 2011.
The acquisition is partly financed by vendor financing provided by its parent firm Golar LNG of approximately $222 million. The loan has a term of three years and a fixed interest rate of 6.75 percent per annum.
Golar LNG Partners also will seek $108 million in other loans to finance the acquisition.
It is expected that the vendor financing will be refinanced prior to its maturity with third party debt and/or in connection with the acquisition of potential further assets by Golar LNG Partners from the company in the future.
?We are very pleased to have completed this transaction which confirms the company?s strategy to monetize long-term contracts through the growth of Golar LNG Partners," Golar LNG Chairman John Fredriksen said.
?As a large shareholder in Golar LNG Partners, we are also pleased to see that the strategy to grow the business and dividends is now coming to fruition.?
Golar LNG Ltd, a Norwegian company, is also currently building the first Indonesian floating storage regasifation unit (FSRU) to be deployed in the Jakarta bay. The FSRU is scheduled to be delivered early next year. (romel)