Navigator Holdings Ltd. (Navigator Gas) announced that some of its subsidiaries signed financing agreements, funds intended for the construction and delivery of two new gas carriers currently under construction in China by Jiangnan Shipyard (Group) Co. Ltd. and China Shipbuilding Trading Co. Ltd. The shipbuilding contracts – signed in 2024 – provide for the delivery of the vessels in 2027.
To cover the obligations of the construction phase, the company’s subsidiary, Navigator Gas LLC, formalized a secured term loan for an amount of up to USD 164,640,000 with BNP Paribas that will cover up to 80% of the payments to be made to the shipyards before delivery.
After the delivery of the vessels, the bridge financing will be restructured through a long-term sale and leaseback agreement worth USD 205,800,000, under a Japanese operating lease with purchase option (Jolco) agreement. This will be Navigator Gas’s first financing using this structure and will cover the total purchase price of the vessels at a very competitive price.
In accordance with the terms of the agreement, at the time of delivery, the vessels will be sold to special purpose companies acting as owners and immediately bareboat chartered to the subsidiaries Navigator Polaris LLC and Navigator Proxima LLC, as charterers.
Navigator Gas will retain at all times full responsibility for the commercial and technical operation of the vessels, including crewing, maintenance, insurance and management, and will benefit from the purchase options under the relevant bareboat charter contracts, the last exercise of which occurs eight and a half years after the delivery of each vessel.
“This financing reflects our ongoing commitment to disciplined capital allocation and our ability and desire to access diverse and cost-effective financing solutions. The structure provides long-term financing, and the incorporation of the Jolco structure into Navigator’s portfolio represents a further step in the evolution of our financing strategy, once again supported by high-quality financial partners whose support we greatly value,” commented Gary Chapman, the company’s Chief Financial Officer.
