Source: Golar LNG Partners
Golar LNG Limited announced that its wholly-owned subsidiary, Golar LNG Partners LP, a Marshall Islands limited partnership, has priced its initial public offering of 12,000,000 of the Partnership's common units at an initial public offering price of $22.50 per unit. The offering priced above the initial estimated price range with strong demand. The 12,000,000 common units are being sold by Golar and represent a 30.1% limited partnership interest in the Partnership. The offering will increase to 13,800,000 common units if the underwriters exercise in full their over-allotment option. The common units will trade on The Nasdaq Global Select Market under the symbol "GMLP".
The Partnership will focus on providing floating storage regasification ("FSRU") and liquefied natural gas ("LNG") transportation services under long-term contracts. The Partnership's initial fleet will consist of two FSRU vessels and two LNG carriers.
Immediately following the closing of the offering, Golar will own the Partnership's general partner and an approximate 67.9% limited partner interest in the Partnership. Golar will also own 81% of the Partnership's incentive distribution rights, which will entitle it to increasing percentages of the cash the Partnership distributes in excess of certain target distribution amounts. Golar LNG Energy Limited will own the remaining 19% of the incentive distribution rights.
Golar intends to use the net proceeds of the offering to expand its fleet.