COBALT advised Höegh LNG in relation to USD 250 million Senior Secured Credit Facility

COBALT advised a Norwegian company Höegh LNG in connection with the Lithuanian law-related aspects relevant to the USD 250 million Senior Secured Credit Facility for the financing of the floating LNG storage and regasification unit (FSRU) for Lithuania. The Company had received commitment letters from four banks for a USD 250 million corporate facility for the financing of the FSRU to be delivered for the Klaipedos Nafta FSRU project in Lithuania. These four banks are DNB Bank ASA, Nordea Bank Norge ASA, Skandinaviska Enskilda Banken AB (publ) and Swedbank AB.

According to Höegh LNG’s President and Chief Executive Officer, Sveinung J. S. Støhle, having closed the financing of the Klaipedos Nafta FSRU with four Scandinavian core banks and having both Korean and Norwegian export credit agencies guaranteeing the Facility, Höegh LNG’s proved the ability to raise long-term debt financing for its FSRU projects at competitive terms. Mr Sveinung J. S. Støhle confirmed that the Klaipedos Nafta FSRU project is on schedule in all aspects for a planned start-up in Q3 2014.

On March 2012, Höegh LNG and AB Klaipėdos nafta signed a long-term lease agreement for a floating LNG storage unit. COBALT advised Höegh LNG in this project on public procurement matters, licensing and regulatory regime and other aspects of Lithuanian law, assisted the company in negotiations over the long-term lease agreement and advised it on the establishment of a local Höegh LNG company in Lithuania.

The firm’s Managing Associate Aušrys Šliavas advised Höegh LNG on corporate compliance and authorisations issues required for entering into financing facility.