Dorian LPG Secures New Financing Amidst VLGC Fleet Renewal

Dorian LPG, a US-listed gas carrier owner, has announced new financing arrangements totalling $368.4 million over seven years. This facility consolidates four existing financing arrangements as the company proceeds with its fleet renewal programme involving new Very Large Gas Carriers (VLGCs).

The financing package comprises a $213.4 million term loan and a $155.1 million revolving facility. Both are priced at 140 basis points over SOFR. Dorian LPG plans to draw $193.8 million at the closing of the deal. An additional $16 million of revolving debt is allocated for refinancing the *Clermont* ahead of its delivery to a new owner in October. The *Cresques* is scheduled to be added to the facility at the end of September. The financing also incorporates a $200 million accordion feature, which can be utilised for future growth initiatives.

Syndicate and Sustainability

Nordea and SEB are acting as coordinating bookrunners for the eight-bank syndicate involved in the financing. Other participating banks include Crédit Agricole, BNP Paribas, Danish Ship Finance, DNB Carnegie, ING, and OCBC. Crédit Agricole also serves as the sustainability coordinator for this sustainability-linked facility.

Newbuild Orders and Disposals

The financing announcement coincides with Dorian LPG's confirmation of orders for three 90,000 cubic metre dual-fuel panamax VLGCs from Hanwha Ocean in South Korea. These newbuilds are valued at approximately $345 million in total and are scheduled for delivery in June, September, and December 2030. They will be capable of operating on LPG or conventional low-sulphur fuel.

These orders follow Dorian LPG's previous order in June for a 90,000 cubic metre dual-fuel VLGC from HD Hyundai, priced around $115 million and due for delivery in July 2029. This brings the company's directly announced newbuilding investment this summer to approximately $460 million.

Concurrently, Dorian LPG has been divesting older vessels. The company has sold four vessels: the 2014-built *Corsair*, and the 2015-built *Cobra*, *Constellation*, and *Clermont*. These four disposals have generated over $340 million, reportedly funding a substantial portion of the company's renewal drive. Dorian LPG currently operates a fleet of 25 VLGCs, six of which are dual-fuel eco vessels, according to Splash 247.