Financing For LNG Vessels

The contractual arrangements for the construction and chartering of the vessels were unusual as the vessels would only be accepted by the owners from the shipyard and by the charterers from the owners following the successful offshore discharge of the first regasified cargo of each vessel.

The transaction involved a complex finance structure with limited recourse to the project sponsors and each of the arrangers making available interest-rate swap lines to each borrower.

Ince & Co advised a syndicate of six major banks as arrangers of a syndicated loan facility of US$600 million to finance the construction of two LNG regasification vessels, to be chartered for the offshore discharge of regasified LNG through sub-sea pipelines to Boston, Massachusetts.

The contractual arrangements for the construction and chartering of the vessels were unusual as the vessels would only be accepted by the owners from the shipyard and by the charterers from the owners following the successful offshore discharge of the first regasified cargo of each vessel.

The transaction involved a complex finance structure with limited recourse to the project sponsors and each of the arrangers making available interest-rate swap lines to each borrower.