Hoegh LNG Partners plans $50 million sale of series A cumulative redeemable preferred units

By Stephanie N. Rotondo

Seattle, Sept. 28 – Hoegh LNG Partners LP is offering $50 million of series A cumulative redeemable preferred units, the company said in a prospectus filed with the Securities and Exchange Commission on Thursday.

Price talk is 8.75% to 8.875%, according to a market source.

Morgan Stanley & Co. LLC, UBS Securities LLC and Stifel Nicolaus & Co. Inc. are the joint bookrunners.

Distributions will be made quarterly. The units become redeemable in October 2022 at par plus accrued distributions.

The units will be listed on the New York Stock Exchange under the ticker symbol “HMLPPrA.”

The Bermuda-based owner and operator of LNG carriers intends to use $34.4 million of the deal’s proceeds to repay the 8% seller’s credit note related to the Höegh Gallant acquisition. The remainder of the funds will be used for general partnership purposes, which may include the repayment of additional debt or funding of acquisitions – including the potential acquisition and/or purchase of the 49% interest in Höegh LNG Colombia Holding Ltd., over which the company has a right of first offer – or other capital expenditures.

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