American LNG tanker owner Dorian LPG has increased its financing resources: the company raised new 7-year financing of $368.4 million by combining four previously existing financial instruments, and it continues to build a new generation of VLGC gas carriers.
Transaction terms
- Structure: $213.4 million in a term loan and $155.1 million as a credit line.
- Pricing: 140 bps above SOFR.
- Fund drawdown: by closing, the company expects to receive $193.8 million.
- Additional tranche: an extra $16 million under the credit line is earmarked for refinancing vessel Clermont ahead of transfer to a new owner in October.
- Timeline: ship Cresques is expected to be added to the syndicate by the end of September.
- Growth cushion: the financial model includes a $200 million accordion facility for future expansion.
Who leads the syndicate
Nordea and SEB are leading the syndicated financing. The eight-bank circle also includes Crédit Agricole, BNP Paribas, Danish Ship Finance, DNB Carnegie, ING and OCBC. The sustainability-linked tranche is handled by Crédit Agricole.
Newbuilding orders
- The company has officially confirmed an order for three 90,000 m³ dual-fuel Panamax VLGCs at South Korean shipyards.
- The total value of these vessels is about $345 million.
- Deliveries are scheduled for June, September, and December 2030.
- The new vessels will be able to run on LNG or conventional low-sulfur marine fuel.
- In addition, a previous order for a 90,000 m³ dual-fuel VLGC at HD Hyundai for around $115 million with delivery in July 2029 was also secured.
- The company estimates total disclosed newbuilding investments this season at about $460 million.
Sources of fleet renewal funding
At the same time, Dorian LPG continued secondary tonnage sales: Corsair (2014), Cobra, Constellation, and Clermont (2015) were sold. These four deals generated more than $340 million, strengthening internal funding for the renewal program.
At present, Dorian LPG has 25 VLGCs in operation, including 6 dual-fuel environmentally friendly vessels.
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