Golar LNG secures $1.2bn FLNG Gimi refinancing with improved terms

Golar LNG Limited has announced the successful closure and draw of a new $1.2 billion asset-backed debt facility for the refinancing of FLNG Gimi. This new facility, secured with a consortium of international banks including ABN AMRO, Citibank, DNB, Goldman Sachs, and Standard Chartered Bank, replaces an existing bank facility.

The new debt facility features a seven-year tenor and a 16-year amortization profile, incurring interest at SOFR plus a margin of 2.50% p.a. Golar's 70% share of the net liquidity released from this refinancing amounts to approximately $400 million, after accounting for the repayment of the existing Gimi debt and unwinding of its interest-rate swap.

Chief executive Karl Fredrik Staubo highlighted the improved terms compared to Gimi's initial financing and emphasized the facility's role in proving the bankability of Golar's operational FLNG assets, which are backed by long-term contracts and demonstrate a ~5.5x debt to EBITDA ratio.