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Navigator Gas Announces Signing of $205.8 Million Financing for Two Newbuild Vessels, Incorporating its First JOLCO Sale Leaseback

NVGS
  • Navigator Holdings Ltd. secured financing arrangements to fund two newhandysize liquefied gas carriers currently under construction in China by Jiangnan Shipyard & China Shipbuilding Trading Co. Ltd.
  • Delivery of the vessels is expected in 2027 pursuant to shipbuilding contracts entered into in 2024.
  • Navigator Gas L.L.C. entered a secured pre-delivery term loan of up to $164,640,000 with BNP PARIBAS (Tokyo Branch) to cover 80% of pre-delivery instalments.
  • Upon vessel delivery, the Bridge Facility will be refinanced into a $205,800,000 long-term Japanese Operating Lease with Call Option (JOLCO), marking Navigator's first use of this structure.
  • The JOLCO structure involves selling the vessels to special purpose owner companies & immediately bareboat chartering them back to Navigator Polaris L.L.C. & Navigator Proxima L.L.C.
  • Navigator Gas retains full responsibility for commercial & technical operations, including crewing, maintenance, insurance, & management.
  • The company will benefit from purchase options under the bareboat charters, with the final option exercisable 8.5 years after each vessel delivery.
  • Both financing arrangements are secured by customary security packages including assignments of shipbuilding contracts & refund guarantees.
  • This financing completes the funding for four of the company's six ordered newbuild vessels.