EXMAR and Teekay LNG Partners have reached an agreement in principle where Teekay will purchase a 50 percent interest in two of EXMAR's LNG carriers:'Excelsior' (2005-built LNGRV) and 'Excalibur' (2002-built conventional LNG) with an economic date of 1 September 2010.
Both vessels are long-term time-chartered to Excelerate Energy. EXMAR will remain responsible for the management and operations of the vessels.
The transaction is still subject to the completion of the loan and lease documentation currently in progress with the existing lenders.
Signing of the agreements with Teekay and the lenders is expected to take place in about two weeks.
The transaction will generate a profit of approximately US$50 million. The net consideration for the sale will amount to approximately US$70 million (including US$7 million of working capital and other cash assets) split in US$35 million cash and approximately 1,050,000 TGP common units.
In addition the transaction will reduce EXMAR's indebtedness by more than US$100 million.
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