BW LPG Limited announces financing program for
seven VLGC newbuildings
(Singapore, 17 February 2015)
BW LPG Limited ("BW LPG", the "Company", OSE ticker
code: "BWLPG") announced today that it has signed a
Facility Agreement for a debt facility of up to
USD400 million for financing seven of its VLGC
newbuildings.
The financing has been raised from The Export-
Import Bank of Korea ("KEXIM") as Export Credit
Agency (ECA) lender, with DNB Asia Limited ("DNB")
and Skandinaviska Enskilda Banken AB (Publ),
Singapore Branch, ("SEB") as Mandated Lead
Arrangers and commercial lenders.
DNB and HSBC Bank Plc. ("HSBC") acted as ECA
structuring advisors with HSBC also acting as ECA
coordinator.
BW LPG Chief Executive Officer, Nicholas Gleeson,
commenting on the financing said, "We are very
pleased with this financing, which leverages the
well-priced Korean ECA lending to provide an
exceptional all-in cost and structure."
The Facility comprises the following:
- An ECA tranche of up to USD268 million that
is being provided by KEXIM, representing
approximately 67% of the facility amount.
- A Commercial tranche of up to USD133
million, split equally between the two commercial
lenders, representing approximately 33% of the
facility amount.
The debt financing will be secured against seven of
the Company's VLGC newbuildings. The blended margin
over LIBOR applicable across all tranches of the
financing is 1.70% p.a., and the weighted average
amortisation profile will be 18 years.
Vijay Kamath, BW LPG Chief Financial Officer,
added, "This facility, we believe, is a market
leading financing in terms of pricing, tenor and
structure and reflects the strong continued support
that the Company enjoys from its banks and the
lending community. This facility is a culmination
of a substantial effort from our team and also the
Banks and financial institutions involved, to all
of whom we would like to express our sincere
gratitude."
The covenants applied to this financing programme
are the same that have been applicable in BW LPG's
previous financing transaction of USD700 million
facility (outlined on page 125 of our IPO
prospectus).
This Facility also contains the change of control
provision (consistent with the US$700m IPO
financing) that if Sohmen family interests cease to
hold more than 50% in BW Group; BW Group ceases to
hold more than 35% in the Company; or another
person or entity than BW Group acquires more than
50% in the Company; the Facility must be cancelled
and repaid in full.
The full completion of this transaction remains
subject to customary closing conditions. The
Company expects to close the first drawdown under
the transaction in February.
For further information, please contact:
Vijay Kamath
Chief Financial Officer
BW LPG Limited
Tel: +65 6705 5506
Email: vijay.kamath@bwlpg.com
ABOUT BW LPG
BW LPG is the world's largest very large gas
carrier (VLGC) owner and operator based on number
of VLGCs and by LPG carrying capacity. BW LPG owns
and operates 36 gas carriers with a total carrying
capacity of close to 3 million cbm and a further
588,000 cbm of capacity on order in Korea. With 35
years of operating experience in LPG shipping and
experienced seafarers and staff, BW LPG offers a
flexible and reliable service to customers. BW LPG
is associated with BW Group, one of the world's
leading shipping groups. BW Group is involved in
oil and gas transportation, floating gas
infrastructure, environmental technologies and deep-
water production.
This information is subject to disclosure
requirements pursuant to Section 5-12 of the
Norwegian Securities Trading Act.
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