On 9th October, 2021, Höegh LNG group President & CEO, Sveinung Støhle is to resign from the company in order to pursue an alternative career opportunity based outside Norway, believed to be with the Angelicoussis Group.
Støhle will remain in his position until 1st November, 2021.
The Board has started the process to find his successor and has appointed Thor Jørgen Guttormsen as interim President & CEO from the beginning of November.
Meanwhile, Höegh LNG Partners has agreed with its lenders to defer the maturity date of the commercial tranche of its ’PGN FSRU Lampung’ debt facility.
This will give it more time to conclude a refinancing package, the company explained.
The lenders have agreed to defer the maturity date to 14th January, 2022 from 29th September, 2021.
Subject to commitment letters and a term sheet for a refinancing of the commercial tranche being in place by 29th December, 2021, the maturity date will automatically be further deferred to 29th March, 2022.
The commercial tranche will continue to be amortised at its current rate and there will be a gradual step-up in the interest margin with up to 235 basis points increase.
As a condition for the deferred maturity date, no shareholder loans may be repaid and no dividends may be paid to the Partnership by the subsidiary borrowing under the Lampung Facility, PT Hoegh LNG Lampung.
And as a result, no cash flow from the ’PGN FSRU Lampung’ will be available for the Partnership prior to the deferred maturity date. However, this limitation does not prohibit the Partnership from paying the current distributions to preferred and common unitholders, the company said.
The export credit tranche of the Lampung facility matures in 2026, but may be called if the commercial tranche is not refinanced at its maturity date and in accordance with its terms. This clause continues to apply for the deferred maturity date.
The Partnership said that it was considering various options and expects that the terms of any refinancing are likely to be less favourable than the terms of the existing facility and the refinancing that was originally agreed and may potentially be dilutive to unitholders, depending on the refinancing structure that will be adopted.
Despite the previously announced notice of arbitration served by the charterer on 2nd August, 2021, both parties have continued to perform their respective obligations under the lease and maintenance agreement for the FSRU.
In the event that the Partnership is unable to refinance the Lampung facility, or if the outcome of the dispute is unfavourable, it could have a material adverse impact on its business, results of operations, financial condition and ability to pay distributions to unitholders, Höegh warned.