Excelerate has acquired the FSRU at "a price well below current market value" of $265M from Maran Gas subsidiary Anemoesa Marine Inc, incorporated under the laws of the Republic of the Marshall Islands
In March 2023, Excelerate said it had arranged a US$350M extension on an existing loan and an additional US$250M in new loans to enable the purchase of the FSRU Sequoia.
“We are proud to add the FSRU Sequoia to the Excelerate portfolio of fully owned assets,” said Excelerate president and chief executive Steven Kobos. “Acquiring Sequoia at a price well below current market value ensures the vessel will remain an integral part of the Excelerate fleet for the long term. We look forward to continuing to utilise the FSRU Sequoia to provide flexible access to cleaner and more reliable energy to our valued markets.”
Sequoia has a storage capacity of 173,400 m3 and can operate as both an FSRU and a traditional LNG carrier. The FSRU is currently providing regasification services at the Bahia Regasification Terminal in Bahia, Brazil.
In June 2020, Excelerate took delivery of Sequoia from South Korea’s Daewoo Shipbuilding & Marine Engineering, expanding its fleet to 10 FSRUs. Excelerate and Greece-headquartered Maran Gas Maritime later signed a five-year bareboat charter agreement for the FSRU with the option for Excelerate to purchase Sequoia during the charter.
Excelerate floated an initial public offering in April 2022 that saw it raise more than US$400M in share value. Houston, Texas-headquartered Excelerate is controlled by American billionaire George Kaiser, and the company said it would receive net proceeds of approximately US$362M, excluding the additional share buying option. The loan facilities the company has arranged to purchase Sequoia both mature in March 2027.
Excelerate said it intends to acquire the vessel by exercising the purchase option it has with the vessel’s owner and for the purchase to be completed in April 2023. The loan agreement will expire 1 May 2023 if the acquisition of Sequoia does not close by then, according to the company.
“This amended credit facility enhances our financial flexibility and supports our future growth and development initiatives. We are excited to acquire the FSRU Sequoia, one of the most capable vessels in the industry, at an attractive price well below current market values," Excelerate chief financial officer Dana Armstrong said.
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