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Golar LNG Inks Finance Lease Agreements With Chinese Consortium
LNGCheniere(LNG) ZACKS·2025-03-21 20:00

Core Viewpoint - Golar LNG Limited (GLNG) is preparing to refinance its floating liquefaction natural gas (FLNG) vessel Gimi's debt facility through a sale leaseback agreement valued at approximately 1.2billionwithaconsortiumofChineseleasingcompanies[1][2].Group1:FinancingDetails−Thesaleleasebackfacilityissubjecttocustomaryclosingconditions,includingdocumentationcompletionandthird−partyapprovals,andisexpectedtobefinalizedbytheendofthesecondquarterof2025[2].−Thefacilityhasatenureof12yearsandfeaturesa17−yearamortizationprofile,withquarterlyrepaymentinstallmentsthroughouttheleaseperiod[2].Group2:FinancialProceeds−Uponcompletionandrepaymentoftheexistingdebtfacility,GimiMSCorporationisexpectedtogeneratenetproceedsofnearly1.2 billion with a consortium of Chinese leasing companies [1][2]. Group 1: Financing Details - The sale leaseback facility is subject to customary closing conditions, including documentation completion and third-party approvals, and is expected to be finalized by the end of the second quarter of 2025 [2]. - The facility has a tenure of 12 years and features a 17-year amortization profile, with quarterly repayment installments throughout the lease period [2]. Group 2: Financial Proceeds - Upon completion and repayment of the existing debt facility, Gimi MS Corporation is expected to generate net proceeds of nearly 530 million, which includes the release of existing interest rate swaps [3]. - Golar LNG anticipates benefiting from 70% of these proceeds, amounting to approximately $371 million [3]. Group 3: Stock Performance - Golar LNG currently holds a Zacks Rank of 3 (Hold) and has seen its shares increase by 59.7% over the past year, outperforming the transportation-shipping industry [4].