HMLP IPO Preview Aug 2014

Hoegh LNG Partners, LP (ticker HMLP) is currently out on its IPO roadshow and looking to raise $192 million by selling 9.6 million common units (before the over-allotment) at a mid-point price of $20 with an indicated mid-point yield of 6.75%. They expect to price the deal Wednesday August 6.

HMLP is a growth-oriented limited partnership formed by Höegh LNG Holdings Ltd. (Oslo Børs symbol: HLNG), a leading floating LNG service provider, to own, operate and acquire floating storage and regasification units (“FSRUs”), LNG carriers and other LNG infrastructure assets under long-term charters, which are defined as charters of five or more years. At the closing of this offering, interests in their initial fleet of FSRUs will be contributed to HMLP by Höegh LNG. HMLP’s initial fleet will consist of modern FSRUs that operate under long-term charters with major energy companies or utilities. HMLP intends to grow its business in the FSRU, LNG carrier and LNG infrastructure market through acquisitions from Höegh LNG and third parties. HMLP also believes it can grow organically by continuing to provide reliable service to customers and leveraging Höegh LNG’s relationships, expertise and reputation.

  • Here is a link to the roadshow video (it will be removed the night the IPO prices): IPO Roadshow Video (just checked and unfortunately the roadshow video hasn’t been posted, if anyone has a link to it elsewhere please let me know, thanks)
  • Here is a link to their SEC filings: HMLP SEC Filings

IMPORTANT: HMLP will provide investors with a 1099-DIV (instead of a K-1), which means, yes, you can buy it in any tax advantaged account and not have to worry about possible UBTI issues.

About Philip Trinder

President of MLP Protocol, investor, trader, and proponent of Master Limited Partnerships.
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