Golar bags $1.2bn FLNG vessel refinancing

Tor Olav Trøim-backed floating liquefied natural gas (FLNG) specialist Golar LNG has struck a deal with a consortium of Chinese lessors which will see the refinancing of the existing debt on the FLNG Gimi vessel.

The agreement, structured as a sale and leaseback is worth about $1.2bn and expected to close in the second quarter of this year, the Nasdaq-listed company said.

It will have a tenor of 12 years and a 17-year amortisation profile, with quarterly repayment installments throughout the lease period.

Golar’s 70%-owned Gimi MS Corporation is expected to generate net proceeds of around $530m, after repayment of the existing debt.

The vessel is operating at BP’s Greater Tortue Ahmeyim (GTA) project offshore Mauritania and Senegal under a long-term contract until 2045.