Navigator Gas Secures $164.6M Bridge Loan for Two Newbuild Vessels, Plans $205.8M JOLCO Sale-Leaseback
NVGS•Navigator Gas has secured a $164.64 million bridge facility to fund pre-delivery instalments for two handysize gas carriers under construction in China, with financing covering 80% of construction-stage obligations. Upon delivery in 2027, the vessels will transition into a $205.8 million JOLCO sale-leaseback, marking Navigator’s first use of this structure.
1. Secured Bridge Facility for Newbuild Vessels
Navigator Gas L.L.C. entered a secured pre-delivery term loan of up to $164.64 million with BNP Paribas’s Tokyo branch to fund 80% of instalment payments for two handysize liquefied gas carriers under construction at Jiangnan Shipyard and China Shipbuilding Trading. The Bridge Facility covers construction-stage obligations until vessel delivery.
2. Transition to JOLCO Sale-Leaseback Structure
On delivery in 2027, the bridge loan will convert into a $205.8 million Japanese Operating Lease with Call Option (JOLCO), Navigator’s first sale-leaseback financing. Vessels will be sold to special purpose lessor companies and immediately bareboat chartered back, with Navigator retaining full operational control and purchase options after 8.5 years.
3. Newbuild Fleet Funding Milestone
This financing completes funding for four of Navigator’s six newbuild vessels on order, demonstrating disciplined capital allocation and access to diverse, cost-effective funding solutions. Financing for the remaining two vessels is progressing, supporting the company’s fleet expansion and maintenance of its global handysize gas carrier leadership.
