HAMILTON, Bermuda, Nov. 16, 2017 /PRNewswire/ -- Höegh LNG
Partners LP (NYSE: HMLP) ("HMLP" or the "Partnership") today
announced that it has agreed to acquire (the "Acquisition") from a
subsidiary of Höegh LNG Holdings Ltd. ("Höegh LNG") the remaining
49% ownership interest in Höegh LNG Colombia Holding Ltd.
("Grace Holding"), the sole owner of
Höegh LNG FSRU IV Ltd. ("Höegh FSRU IV") and Höegh LNG Colombia
S.A.S. ("Höegh Colombia SAS"), the entities that own and operate
the floating storage and regasification unit ("FSRU") Höegh
Grace, that it does not already own. The purchase price
for the Acquisition will be $85.9
million (the "Purchase Price"). HMLP intends to settle the
Purchase Price with a combination of cash on hand and a drawing
under its existing revolving credit facility. The Purchase
Price will be subject to certain post-closing adjustments for net
working capital.
The Acquisition is expected to be completed by the beginning of
January 2018 and is subject to
customary closing conditions.
The Partnership purchased its initial 51% interest in
Grace Holding in January
2017.
The Board of Directors of the Partnership (the "Board") and the
Conflicts Committee have approved the acquisition and the purchase
price. The Conflicts Committee retained an outside financial
advisor and outside legal advisor to assist with its evaluation of
the acquisition and the purchase price.
Management anticipates recommending to the Board a distribution
increase with respect to the quarter ending March 31, 2018 to reflect the Acquisition. Any
such increase would be conditioned upon, among other things,
approval by the Board, the timely closing of the Acquisition and
the absence of any material adverse developments or potentially
attractive opportunities that would make such an increase
inadvisable.
Forward-Looking Statements
This press release contains certain forward-looking
statements concerning future events and the Partnership's
operations, performance and financial condition. Forward-looking
statements include, without limitation, any statement that may
predict, forecast, indicate or imply future results, performance or
achievements, and may contain the words "believe," "anticipate,"
"expect," "estimate," "project," "will be," "will continue," "will
likely result," "plan," "intend" or words or phrases of similar
meanings. These statements involve known and unknown risks and are
based upon a number of assumptions and estimates that are
inherently subject to significant uncertainties and contingencies,
many of which are beyond the Partnership's control. Actual results
may differ materially from those expressed or implied by such
forward-looking statements. Important factors that could cause
actual results to differ materially include, but are not limited
to:
- the timing of the Acquisition and the satisfaction of the
conditions to closing thereof;
- the Partnership's ability to increase distributions to
unitholders and the amount of any such increase;
- FSRU and LNG market trends, including hire rates and factors
affecting supply and demand;
- the Partnership's ability to implement its growth strategies on
a timely basis or at all and other plans and objectives for future
operations;
- the Partnership's future revenues, expenses, financial
condition and results of operations;
- the Partnership's ability to make additional borrowings and to
access debt and equity markets;
- charter commencement and termination dates and extensions of
charters; and
- other factors listed from time to time in the reports and other
documents the Partnership files with the United States Securities
and Exchange Commission.
New factors emerge from time to time, and it is not possible for
the Partnership to predict all of these factors. Further, the
Partnership cannot assess the impact of each such factor on its
business or the extent to which any factor, or combination of
factors, may cause actual results to be materially different from
those contained in any forward-looking statement. The Partnership
does not intend to release publicly any updates or revisions to any
forward-looking statements contained herein to reflect any change
in the Partnership's expectations with respect thereto or any
change in events, conditions or circumstances on which any such
statement is based.
About Höegh LNG Partners LP
Höegh LNG Partners LP is a growth-oriented limited
partnership formed by Höegh LNG Holdings Ltd. (Oslo Børs ticker:
HLNG), a leading floating LNG service provider. HMLP's strategy is
to own, operate and acquire FSRUs and associated LNG infrastructure
assets under long-term charters.
Contact
Richard Tyrrell
Chief Executive Officer and Chief Financial Officer
+44 7919 058830
www.hoeghlngpartners.com
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SOURCE Hoegh LNG Partners LP