LNG carrier specialist CoolCo (more formally Cool Company Ltd.) has reached an agreement to sell the oldest vessel in its fleet, Golar Seal (IMO: 9624914), for $184.3 million. The transaction is expected to close on redelivery of the 2013-built , 160,000 cubic meter vessel from its current charter in late March. This means that the buyer will assume all costs associated with the vessel’s forthcoming dry-docking, increasing the deal’s effective economic value to CoolCo to about $190 million.
The vessel is being acquired by Höegh LNG Holdings Ltd. which called the purchase price “in line with current market level for similar vessels.”
FSRU CONVERSION
“We are very pleased to make this investment which underpins our growth ambitions. The vessel will be an excellent addition to our fleet, and provide flexibility to pursue FSRU conversion opportunities.” said Erik Nyheim, president & CEO of Höegh LNG.
“Through the sale of the Golar Seal, the earliest vessel in our fleet to be built, we are demonstrating our disciplined approach to locking in shareholder value,” said CoolCo CEO Richard Tyrrell. “The valuation highlights the re-pricing of the LNG carrier market and the strategic value of such LNG infrastructure assets. A 2.5-times cash-on-cash return in little more than 12 months since CoolCo’s formation shows the considerable upside in our fleet.”
Tyrell added that the deal releases approximately $94 million in cash that will be available in the event that CoolCo decides to exercise its option agreement on two highly sought-after Hyundai Samho vessels, now scheduled for delivery ahead of contract in the second half of 2024.”
NYSE LISTING
CoolCo recently filed a registration statement with the SEC with the intention of directly listing its shares on the New York Stock Exchange (“NYSE”). Subject to the registration statement being declared effective by the SEC, the company’s shares will be registered with the SEC and listed for trading on the NYSE in addition to the Euronext Growth Oslo under the ticker “CLCO” from March 15, 2023.
“By listing on the NYSE, we are expanding our investor base and providing U.S. investors with access to CoolCo’s unique combination of attractive dividends and exposure to the fast-growing global demand for LNG transportation,” said Tyrell. “Upon listing, CoolCo will be one of the largest of a limited number of U.S. publicly traded companies that are connecting global markets with LNG, which is crucial to energy security and has an important role in the global transition to a lower-carbon future. Our new presence in the U.S. market will generate immediate value for all CoolCo shareholders by providing easier access to CoolCo shares and additional trading liquidity. Additionally, the dual listing further strengthens CoolCo’s financial flexibility, supplementing our strong balance sheet, significant internal cash generation, and proven access to competitively priced debt in ensuring that we are well positioned to seize attractive growth opportunities in a prudent manner that maximizes shareholder value.”
