Idan Ofer-backed Golar LNG spinoff CoolCo has secured sustainability linked $570m bank loan to finance the acquisition of six of the eight TFDE LNG carriers from Tor Olav Trøim-led Golar.
As previously reported, in addition to the bank loan, CoolCo plans to raise around $250m of external equity through a private placement. Idan Ofer-controlled Eastern Pacific Shipping (EPS) will invest $150m and become the largest shareholder in the new company, which will have an initial market cap of around $375m with Golar retaining a shareholding of a minimum of $125m.
CoolCo will immediately list on the Oslo OTC exchange and should list on Euronext Growth Oslo in February 2022. According to Golar, the company will also target an additional listing on an internationally recognised stock exchange this year.
Proceeds from the private placement, together with the bank loan, will be used to fund the acquisition of eight LNG carriers from Golar and for CoolCo’s working capital and general corporate purposes. The existing lease financing on two vessels, Golar Ice and Golar Kelvin, will remain and be transferred to CoolCo.
The formation of CoolCo is expected to be concluded within Q1 2022, subject to market conditions. The total debt on its assets will be around $810m at inception.