LNG carrier owner Cool Company (CoolCo) has revealed plans to buy four vessels from Quantum Crude Tankers, an affiliate of Idan Ofer’s Eastern Pacific Shipping (EPS) and its largest shareholder.
A spinoff of Tor Olav Trøim’s Golar LNG said it would pay around $660m for two modern two-stroke 174,000 cu m vessels Kool Firn and Kool Orca delivered in 2020 and 2021 and two modern 170,200 cu m TFDE vessels Kool Boreas and Kool Baltic delivered in 2015.
The price is in line with what Quantum agreed with ING Bank in May 2022, CoolCo added. All ships, previously owned by Russia’s Sovcomflot, are on long-term charters with Shell.
As part of the move to expand its fleet to 12 ships, the company will raise $270m via private placement and take on the existing $500m term loan relating to the vessels.
The private placement consists of an offer of new shares in the company to raise gross proceeds of $170m, while the remaining portion is an offer of shares from Golar LNG. EPS, which owns nearly 40% of CoolCo, has pre-committed to subscribe for $135m worth of shares.
In addition, CoolCo has entered into an option agreement with an affiliate of EPS to acquire two shipbuilding contracts with Hyundai Samho Heavy Industries in Korea for deliveries in the first quarter of 2025. The options are exercisable before the end of the second quarter of 2023, with ships valued at $234m each.
