Dorian LPG Secures $368.4 Million in Financing and Confirms Orders for Three VLGCs

en.Wedoany.com Reported - On September 4, Dorian LPG officially confirmed the signing of a construction contract with South Korea's Hanwha Ocean for three 90,000-cubic-meter dual-fuel Panamax Very Large Gas Carriers (VLGCs), with a total value of approximately $345 million. The three new vessels are scheduled for delivery in June, September, and December 2030, respectively. When Hanwha Ocean disclosed the order on September 1, it had only identified the client as an Oceania-based shipowner, with the contract value disclosed at KRW 477.8 billion. Dorian's announcement this time officially confirms the buyer's identity.

The new vessels will be equipped with dual-fuel main engines capable of operating on LPG and conventional low-sulfur fuel, and will feature shaft generators, enabling onboard power generation from the main propulsion system during transit. The hull form and main engines are also optimized for larger-diameter propellers and propeller-related energy-saving devices. Based on the vessel design disclosed by Dorian, the new ships will be capable of transiting the old locks of the Panama Canal.

Dorian also disclosed that on September 2, it signed a new seven-year credit facility totaling $368.4 million, intended to refinance the 2023 amended and restated financing, the Cougar and Cresques Japanese financings, and the Commander portion of the BALCAP financing. The facility consists of a $213.4 million term loan and a $155.1 million revolving credit facility, priced at SOFR plus 140 basis points, with sustainability-linked provisions.

At closing of the facility, the company plans to draw $193.8 million; the Cresques is expected to be added to the facility at the end of September, and the company also plans to draw $16 million from the revolving credit facility to refinance debt related to the Clermont prior to its delivery to a new owner in October. The agreement also includes a $200 million accordion facility. Nordea and SEB are serving as coordinating bookrunners, with the syndicate also including Crédit Agricole, BNP Paribas, Danish Ship Finance, DNB Carnegie, ING, and OCBC, with Crédit Agricole also acting as sustainability coordinator.

These three new Hanwha Ocean vessels represent the second batch of orders following Dorian's additional newbuilding program announced in June this year. In June, the company placed an order with HD Hyundai for one 90,000-cubic-meter dual-fuel Panamax VLGC at a price of approximately $115 million, with delivery scheduled for the third quarter of 2029. The two batches of orders together involve four 90,000-cubic-meter-class dual-fuel VLGCs, with publicly disclosed contract investment of approximately $460 million.

Dorian has also continued to dispose of older VLGCs this year. The Cobra was sold in May, generating net proceeds of $81.9 million; the Corsair and Constellation were sold in July, with combined net proceeds of $166.4 million. The company has also arranged for the sale of the Clermont, with delivery to the new owner planned for October. As of September 4, Dorian's operating fleet disclosed was 25 VLGCs, six of which are dual-fuel ECO-type vessels.