Cool Company Ltd. And Huaxia Financial Leasing Co., Ltd. Agree Sale And Leaseback Financing For Newbuild Vessels
Portfolio Pulse from Benzinga Newsdesk
Cool Company Ltd. (NYSE:CLCO) and Huaxia Financial Leasing Co. Ltd. have entered into sale and leaseback financing arrangements for the Kool Tiger and Kool Panther newbuild vessels. The vessels are scheduled to deliver to CoolCo in the second half of 2024 from Hyundai Samho Heavy Industries in Korea. The Sale and Leasebacks are on a fixed rate per day basis for 10 years, with an implied interest rate just under 6% and a minimum loan-to-value of 80%. CoolCo has fully financed the two MEGA LNG Carrier newbuilds.
October 18, 2023 | 8:14 pm
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POSITIVE IMPACT
Cool Company Ltd. has entered into a sale and leaseback financing arrangement with Huaxia Financial Leasing Co. Ltd. for newbuild vessels. This deal strengthens CoolCo's future cashflow potential and strategic capabilities.
The sale and leaseback financing arrangement allows Cool Company Ltd. to fully finance its two MEGA LNG Carrier newbuilds. This deal not only strengthens the company's financial position but also provides it with considerable flexibility, both commercially and financially. This could potentially lead to growth in the company and an increase in its stock price.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100