CoolCo buying two LNG carriers newbuilds

LNG shipowner Cool Company (CoolCo) has exercised its option to acquire two newbuild LNG carriers from affiliates of EPS Ventures.

CoolCo said that the Mega LNG carriers were scheduled to be delivered from Hyundai Samho Heavy Industries (HHI) in September and December of 2024.

The two 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 vessels is being acquired under the pre-existing purchase option price of approximately $234m, a discount of approximately 10% to the current quoted market value for comparable newbuild vessels.

The initial exercise price is approximately $57m per vessel, while approximately $134m of the remaining $177m is due upon delivery of each of the vessels. The expected closing date and payment of the option exercise is July 3, 2023.

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.