Höegh LNG Partners LP To Get Remaining 49% Interest In Höegh Grace
Höegh LNG Holdings Ltd. (“Höegh LNG”) today announced an agreement to transfer the remaining 49% ownership interest in Höegh LNG Colombia Holding Ltd. (“Grace Holding”), the sole owner of the entities that own and operate Höegh Grace, to Höegh LNG Partners LP (“HMLP”) for a purchase price of USD 172.5 million, less USD 86.6 million in pro-rata indebtedness related to Höegh Grace expected to be outstanding at the closing date of the transaction. HMLP intends to settle the purchase price with a combination of cash at hand and a drawing under its revolving credit facility granted by Höegh LNG. The purchase price will be subject to certain post-closing adjustments for net working capital.
HMLP purchased the initial 51% ownership interest in Grace Holding in January 2017.
The transaction has been approved by the Board of Directors of Höegh LNG, the Board of Directors of HMLP and HMLP’s Conflicts Committee. The transaction is expected to be completed by the beginning of January 2018, subject to customary closing conditions.
Sveinung J.S. Støhle, President and CEO of Höegh LNG, stated “We are delighted to have reached an agreement with HMLP for the third drop-down to the MLP. Funded by a well-received offering of HMLP’s perpetual preferred equity earlier this autumn, the transaction demonstrates Höegh LNG’s diversified capital markets access. With a leading position in the FSRU market, Höegh LNG remains committed to provide HMLP with further growth opportunities through accretive drop-downs of FSRUs on long-term contracts.”