Photo credit: Awilco LNG / Image: WilForce
Norway’s Awilco LNG has completed on June 13 the refinancing of both of its 11-year-old LNG carriers WilForce and WilPride.
Announcing its second quarter results, the LNG player said this will reduce the company’s cash payments by approximately $6.5m over the next 12 months and cash break-even will be reduced by approximately $9,000 per day per vessel compared to the previous financing.
The WilForce and WilPride financial leases with CCB Financial Leasing (CCBFL) were refinanced in mid-June with a new up-to 12-year sale/leaseback facility provided by China Development Bank Financial Leasing (CDBL).
As it is reported by Awilco LNG, both vessels were purchased from CCBFL for the at that time outstanding amount under the leasing agreement plus a brake fee, $184.6m in total and further sold to CDBL at a gross consideration of $200m in total – $100m per vessel.
The vessels are chartered back on a bareboat basis to subsidiaries of the company for a period of up to 12 years.
Awilco LNG has revealed in its second quarter results that the finance cost for the next year is expected to be reduced by about $6.5m compared to the previous financing arrangement subject to interest rate fluctuations.
“The Group has rolling repurchase options starting after two years and repurchase obligations at maturity of the facility,” the LNG company added.
The company currently own and operates two 2013-built 156,000cbm TFDE LNG carriers, WilPride and WilForce, trading in the medium-term market.
