CoolCo Announces Expansion of Bank Facility to Fund Recently Announced LNGe Conversion Upgrades
28 Junio 2023 - 3:03PM
Increased debt capacity by $70 million and
reduced margin of existing bank facility maturing in February
2027
Incremental funds to finance previously
announced LNGe conversion of five LNG carriers, including
retrofitting with sub-coolers for LNG boil-off reliquefaction
Cool Company Limited (NYSE: CLCO /
CLCO.OL “CoolCo” or the “Company”) announces today that a
syndicate of existing lenders in one of its bank facilities (the
“Senior Secured Sustainability Linked Amortizing Term Loan” or
“Facility”) has approved an increase in the debt amount of $70
million and has also agreed to reduce the Facility’s interest rate
margin from 275 basis points to 225 basis points. The additional
funding is expected to be drawn on June 30, 2023. The Facility’s
underlying SOFR exposure is fully hedged, and the Facility’s
scheduled amortization will be adjusted proportionally for the
increased size. The additional debt funding under this Facility
will fund the LNGe conversion of five vessels, including retrofits
with sub-coolers for LNG boil-off reliquefaction under the recently
announced contract with HD Hyundai Global Service.
John Boots, CFO, commented:
As we take decisive steps forward in our efforts
to reduce the emissions profile and improve the overall
competitiveness of our fleet of modern LNG carriers, this amendment
stands as a testament to the confidence in our mission by our
banking partners, for which we are very thankful. The improved
terms of the Facility speak to our strong financial position, a
source of true competitive advantage under current credit
conditions. The upgrades that make up the LNGe conversion process
put our TFDE vessels firmly into the top tier of all TFDEs in the
market, with boil-off rates that make these upgraded vessels
extremely competitive with 2-stroke vessels, further improving
CoolCo’s ability to take advantage of the strong demand for
high-quality, modern LNG carriers.
About CoolCo
CoolCo is a growth-oriented owner, operator and
manager of fuel-efficient liquefied natural gas (“LNG”) carriers.
Using its integrated, in-house vessel management platform, CoolCo
provides charterers and third-party LNG vessel owners with modern
and flexible management and transportation solutions, delivering a
lesser-emitting form of energy that supports decarbonization
efforts, economic growth, energy security, and improvements in
quality of life. CoolCo intends to leverage its industry
relationships to make further accretive acquisitions of in-service
LNGCs, and to selectively pursue newbuild opportunities.
For further information, please
contact:
ir@coolcoltd.com
Forward-looking Statements
This press release contains forward-looking
statements within the meaning of the U.S. Private Securities
Litigation Reform Act of 1995, including statements with respect to
the retrofitting of the vessels with equipment and any subsequent
improvements in performance, reductions in emissions, the LNG
carrier market, and other non-historical statements.
Forward-looking statements are typically identified by words or
phrases, such as “about”, “believe,” “expect,” “plan,” “goal,”
“target,” “strategy,” and similar expressions or future or
conditional verbs such as “may,” “will,” “should,” “would,” and
“could.” These statements are based on current expectations,
estimates, assumptions and projections and you should not place
undue reliance on them. Forward-looking statements do not guarantee
future performance and involve risks and uncertainties. These risks
and uncertainties include risks relating to this contract, future
industry conditions and other risks indicated in the risk factors
included in CoolCo’s Annual Report on Form 20-F for the year ended
December 31, 2022 and other filings with the U.S. Securities and
Exchange Commission. These forward-looking statements are made only
as of the date of this document. We do not undertake to update or
revise the forward-looking statements, whether as a result of new
information, future events or otherwise.
This information is subject to the disclosure
requirements in Regulation EU 596/2014 (MAR) article 19 number 3
and section 5-12 of the Norwegian Securities Trading Act.
Cool Company Ltd.
Hamilton, Bermuda
Questions should be directed to:
c/o Cool Company Management Ltd - +44 207 659
1111 / ir@coolcoltd.com
Richard Tyrrell - Chief Executive Officer
John Boots - Chief Financial Officer
Cool (NYSE:CLCO)
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