Höegh LNG Raises Cash for More FSRU Newbuildings

zoom Höegh LNG Holdings Ltd. has raised NOK 844 million (USD 100 million) in gross proceeds through a private placement of 6.9 million new common shares, each with a par value of USD 0.01 at a subscription price of NOK 122 per share. The company said it intends to use the net proceeds from the private placement to finance further growth by ordering additional floating storage and regasification unit (FSRU) newbuildings and for supporting its general corporate purposes. The net proceeds to the company from the private placement will provide financial resources to support Höegh LNGs growth strategy to become one of the worlds leading providers of floating LNG services, the company explained. Commenting on the announcement, Sveinung J. S. Støhle, President & CEO of Höegh LNG, said, We are very pleased to have concluded this fundraising supporting Höegh LNGs growth strategy. With the support from existing and new shareholders, the company has broadened its shareholder base, increased the free float in its share and further strengthened its financial position. This enables the company to take an even more active role in the growing LNG industry and further strengthen its competitive position in the FSRU segment. The private placement took place through a bookbuilding process managed by ABG Sundal Collier ASA, DNB Markets and Pareto Securities as joint bookrunners. As explained by Höegh, the private placement, which represents 9.90% of the current outstanding shares, was over-subscribed at the subscription price and supported by existing and new institutional investors.