A US$350M extension on an existing loan and an additional US$250 in new loans will be used to buy the FSRU Sequoia
In June 2020, Excelerate took delivery of Sequoia from South Korea’s Daewoo Shipbuilding & Marine Engineering, expanding its fleet to 10 FSRUs – one of the largest in the world. Sequoia, with a storage capacity of 173,400 m3, is capable of operating as both an FSRU and a fully tradeable LNG carrier. 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 (IPO) 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 that it has with the vessel’s owner and for the purchase to be completed in April 2023. The loan agreement will expire on May 1, 2023 if the acquisition of the FSRU 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 CFO Dana Armstrong said.
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