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SHORT-TERM AND LONG-TERM DEBT
 6 Months Ended
Jun. 30, 2024
Long-Term Debt, by Current and Noncurrent [Abstract]  
SHORT-TERM AND LONG-TERM DEBT SHORT-TERM AND LONG-TERM DEBT
(in thousands of $)June 30, 2024December 31, 2023
Short-term and long-term debt:
NOK700 million senior unsecured floating rate bonds due 2024
— 68,426 
NOK600 million senior unsecured floating rate bonds due 2025
53,373 58,089 
7.25% senior unsecured sustainability-linked bonds due 2026
150,000 150,000 
U.S. dollar denominated fixed rate debt due 2026148,125 148,875 
8.875% senior unsecured sustainability-linked bonds due 2027
150,000 150,000 
8.25% senior unsecured sustainability-linked bonds due 2028
150,000 — 
U.S. dollar denominated floating rate debt914,201 1,014,842 
Lease debt financing733,522 573,456 
Total debt principal2,299,221 2,163,688 
Less: Unamortized debt issuance costs(16,337)(16,942)
Less: Current portion of long-term debt(570,992)(432,918)
Total long-term debt1,711,892 1,713,828 

A significant portion of the Company’s outstanding debt will be due within one year of this report for which the Company has initiated discussions and negotiations with financial institutions regarding the refinancing of credit facilities maturing in 2024 and early 2025. Given the Company’s extensive history and successful track record in obtaining financing and refinancing, the Company believes that it will be able to secure the required refinancing of all such facilities prior to maturity.

Interest rate information:

June 30, 2024December 31, 2023
Weighted average interest rate on floating rate debt*6.38 %6.49 %
Weighted average interest rate on lease debt financing5.49 %5.41 %
Weighted average interest rate on fixed rate debt8.40 %8.46 %
Secured Overnight Financing Rate ("SOFR"), closing rate5.33 %5.38 %
Effective Federal Funds Rate ("EFFR"), closing rate5.33 %5.33 %
Norwegian Interbank Offered Rate ("NIBOR"), three-month, closing rate4.73 %4.73 %

*The weighted average interest rate is for floating rate debt denominated in U.S. dollars and Norwegian kroner (“NOK”) which takes into consideration the effect of related interest rate and cross currency swaps.

Fixed Rate Debt and NOK Bonds

NOK700 million senior unsecured bonds due 2024

On June 4, 2019, the Company issued a senior unsecured bond totaling NOK700 million in the Norwegian credit market. The bonds bore quarterly interest at NIBOR plus a margin and were redeemable in full on June 4, 2024. During the six months ended June 30, 2024, the Company purchased and redeemed in full, the outstanding bond with principal amount of NOK695 million equivalent to $62.8 million, incurring a loss of $0.4 million on the transaction. The net amount outstanding as of December 31, 2023 was NOK695 million, equivalent to $68.4 million.
NOK600 million senior unsecured bonds due 2025

On January 21, 2020, the Company issued a senior unsecured bond totaling NOK600 million in the Norwegian credit market. The bonds bear quarterly interest at NIBOR plus a margin and are redeemable in full on January 21, 2025. During the six months ended June 30, 2024, the company purchased bonds with principal amounts totaling NOK20 million equivalent to $1.9 million. A loss of $0.0 million was recorded on the transaction. The net amount outstanding as of June 30, 2024 was NOK570 million equivalent to $53.4 million (December 31, 2023: NOK590 million, equivalent to $58.1 million).

8.25% senior unsecured sustainability-linked bonds due 2028

In April 2024, the Company issued a senior unsecured sustainability-linked bond totaling $150.0 million in the Nordic credit market. The bonds bear quarterly interest at a fixed rate of 8.25% per annum and are redeemable in full on April 19, 2028. The Company aims to reduce carbon emissions which is measured by improving its annual year on year Annual Efficiency Rating, based on fleet average, with at least 2% by 2026. The net amount outstanding as of June 30, 2024, was $150.0 million (December 31, 2023: $0.0 million).

U.S. dollar floating rate debt

The following table presents information on U.S. dollar floating rate debt facilities outstanding as of June 30, 2024 and December 31, 2023. The facilities bear interest at SOFR plus a margin, except the $60 million loan facility which bears interest at EFFR plus a margin.

U.S. dollar floating rate debtCorporate guaranteeDraw-down dateNo. of subsidiaries †Approx. term Balance outstanding as of ($'millions),
June 30, 2024
December 31, 2023
$45 million secured term loan and revolving credit facility*
Full201471130.0 32.5 
$20 million secured term loan facility*
Full2014210— 12.0 
$76 million secured term loan facility*
Part20172740.9 43.5 
$175 million term loan facility*
Part20204599.3 108.7 
$50 million senior secured credit facility*
Full20201432.5 35.0 
$51 million term loan facility*
Part20211436.8 39.0 
$51 million term loan facility*
Part20211437.9 40.1 
$35 million term loan facility*
Part20211729.9 30.9 
$107.3 million term loan facility*
Part20213592.6 95.7 
$100 million term loan facility*
Part20224577.2 82.3 
$23 million term loan facility*
Full20222214.9 17.3 
$115 million term loan facility*
Part20228380.0 90.0 
$144.6 million term loan facility*
Full202343131.8 136.9 
$23.3 million term loan facility**
Full202311— 13.9 
$23.3 million term loan facility**
Full202311— 18.6 
$150 million senior secured term loan facility**
Full202313142.0 150.0 
$8.4 million senior unsecured term loan facility***
—2023—38.4 8.4 
$60 million loan facility****
Part20241060.0 60.0 
Total914.2 1,014.8 
† Number of wholly-owned subsidiaries which entered into the facility.
*These facilities are secured against the vessels owned by the subsidiaries that entered into the facility agreements. In addition, the facilities contain a minimum value covenant and covenants that require the Company to maintain certain minimum levels of free cash, working capital and adjusted book equity ratios.
** These facilities are secured against the pre-delivery contracts or rigs owned by the subsidiaries that entered into the facility agreements. In addition, the facilities contain covenants that require the Company to maintain certain minimum levels of free cash, working capital and adjusted book equity ratios.
***This facility was drawn down by the Company and contains covenants that requires the Company to maintain certain minimum levels of free cash, working capital and adjusted book equity ratios.
****In December 2021, one of our wholly-owned subsidiaries entered into a general share lending agreement and as of June 30, 2024, 11.8 million of the Company’s shares were in the custody of the bank. This facility provides up to $60.0 million cash collateral to us, callable at any time, pertinent to the shares lent. The facility is repayable on demand, by either party to the agreement.

Lease Debt Financing
Wholly-owned subsidiaries of the Company have entered into sale and leaseback transactions for the vessels that they own, through Japanese operating lease with call option financing structures. The vessels have been sold and leased back, with options to repurchase the vessels. These transactions did not qualify as sales under the U.S. GAAP sale and leaseback guidance and have thus been recorded as financing arrangements. The following table presents information on lease debt financing facilities outstanding as of June 30, 2024 and December 31, 2023.

Lease Debt Financing
Price of vessel sold and leased back
($' millions)		Lease start dateApprox. length of lease in yearsFirst repurchase optionBalance outstanding as of ($'millions),
June 30, 2024
December 31, 2023
$65 million lease debt financing
65.020216202645.7 49.4 
$65 million lease debt financing
65.020216202645.9 49.5 
$23.5 million lease debt financing
23.520223202514.1 16.3 
$25.3 million lease debt financing
25.320223202515.7 18.0 
$120 million lease debt financing
120.0202282029103.2 108.4 
$120 million lease debt financing
120.0202282029104.6 109.7 
$45 million lease debt financing
45.020235202839.2 41.7 
$38.5 million lease debt financing
38.520239202836.0 37.3 
$72.2 million lease debt financing
72.2202312203369.5 71.2 
$72.2 million lease debt financing
72.2202312203370.2 72.0 
$77.5 million lease debt financing
77.5202412203375.8 — 
$77.5 million lease debt financing
77.5202412203376.6 — 
$37 million lease debt financing
37.020248202837.0 — 
Total733.5 573.5