Floating liquefaction (FLNG)-focused Golar LNG has set out proposed new terms for its bond issue dating back to 2021 in an effort to bring forward dividend payments and share buybacks.
Golar said it has instructed Nordic Trustee to prepare a written resolution for amendments to the company’s senior unsecured bonds that mature on 20 October 2025.
The Tor Olav Troim-controlled company highlighted that the company’s financial position had undergone “significant strengthening” since the bonds were issued in October 2021.
Golar said it is seeking to make certain amendments to the definition of permitted distribution, to increase its flexibility for potential future shareholder returns.
The company said that it is offering to pay bondholders a one-time consent fee of 3.75% of the amount of the outstanding bonds.
It will also need to conduct a debt incurrence test.
The voting period closes on 25 May at 1600 Oslo time.
Golar detailed today that the company has seen several key developments since it issued its bonds in October 2021.
It detailed these as the sale of its eight tri-fuel diesel-electric LNG carriers to Cool Co on 15 December 2021 and its subsequent sale of its CoolCo shares.
Golar also sold its shares in New Fortress Energy using part of these to buy back New Fortress’ stake in the FLNG unit Hilli, which is currently working off Cameroon.
The former LNG carrier owner sold off two vessels — a floating storage and regasification unit and an LNG carrier — to Italy’s Snam in May 2022.
In addition, Golar entered into several hedges on its TTF-linked tariff’s from its FLNG unit Hilli and said the unit is generating “significant free cash flow from operations”.
The company added that it is optimistic about increasing capacity utilisation and obtaining improved commercial terms on recontracting the unit after its current contract.
Golar is also close to completing a second LNG floater, the FLNG Gimi which is due to start a 20-year contract with BP in the second half of 2023.