Cool Company Limited announced that it has exercised its option to acquire two newbuild stroke LNG carriers from affiliates of EPS Ventures Ltd (EPS).
n particular, the MEGA LNG carriers are scheduled to deliver from Hyundai Samho Heavy Industries (HHI) in Korea in September and December of 2024.
The Newbuilds have a cargo capacity of 174,000 cbm, a GTT Mark III Flex Membrane cargo tank system, reliquification, air-lubrication and shaft generators. Each of the two Newbuilds is being acquired under the pre-existing purchase option price of approximately $234 million, a discount of approximately 10% to current quoted market value for comparable newbuild vessels.
The initial exercise price is approximately $57 million per vessel, while approximately $134 million of the remaining $177m is due upon delivery of each of the vessels. The expected closing date and payment of the option exercise is Monday July 3, 2023.
As explained, the Newbuilds, to be named Kool Tiger and Kool Panther, are expected to be funded with a combination of cash on hand, including cash that was recently released from the sale of the Golar Seal, and debt financing for which CoolCo has received a commitment letter from a financing institution.
We look forward to welcoming these state-of-the-art vessels into the CoolCo fleet at a material discount to their current market value. Their 2024 delivery date makes the vessels especially attractive, with comparable vessels ordered today only being delivered in the 2027/28 timeframe.
..said Richard Tyrrell, CEO.
With the vast majority of the global LNG carrier orderbook already committed to liquefaction projects coming online in the years ahead, few, if any, modern LNG carriers are expected to be available for time charter employment during the late 2024 window when the vessels deliver.