- 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 (CLCO / CLCO.OL “CoolCo”) announces 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.
