Awilhelmsen company Awilco LNG is set to refinance its fleet with a new sale and leaseback deal.
Oslo-listed Awilco LNG said a term sheet covering the 156,000-cbm WilForce and WilPride (both built 2013) was in place with “a major leasing company based in Asia”.
The ships were previously financed under a separate leaseback deal with Teekay LNG Partners which was due to mature at the end of this year.
Jon Skule Storheill, chief executive of Awilco LNG, told TradeWinds the pending transaction would help remove uncertainty in the mind of investors and open the door for growth.
“Uncertainty, investors generally don’t like,” he said. “Also, it does put us in a position where we can now focus on new business and grow for the right projects, if and when they appear.”
Storheill said there were several parties interested in financing the vessels.
“I would not say it was easy but there is a lot of attention and focus in the market on LNG these days,” he said.
“It was not unexpected but it certainly a timely refinancing on our part.”
The Teekay LNG deal included a repurchase obligation priced at $113.3m for the WilForce and $114.5m for the WilPride.
Awilco noted in its last annual report it was working on fresh funding for the vessels, with multiple sources of capital on the table at that time.
