XML 49 R30.htm IDEA: XBRL DOCUMENT
v3.25.1

SHORT-TERM AND LONG-TERM DEBT | 12 Months Ended
--- | ---
Dec. 31, 2024
Long-Term Debt, by Current and Noncurrent [Abstract] |
SHORT-TERM AND LONG-TERM DEBT | SHORT-TERM AND LONG-TERM DEBT
(in thousands of $) | 2024 |  | 2023
Long-term debt: |  |  |
NOK700 million senior unsecured floating rate bonds due 2024 | — |  |  | 68,426 |
NOK600 million senior unsecured floating rate bonds due 2025 | — |  |  | 58,089 |
7.25% senior unsecured sustainability-linked bonds due 2026 | 150,000 |  |  | 150,000 |
U.S. dollar denominated fixed rate debt due 2026 | 147,375 |  |  | 148,875 |
8.875% senior unsecured sustainability-linked bonds due 2027 | 150,000 |  |  | 150,000 |
8.25% senior unsecured sustainability-linked bonds due 2028 | 145,200 |  |  | — |
NOK750 million senior unsecured floating rate bonds due 2029 | 63,592 |  |  | — |
Lease debt financing due through 2033 | 702,164 |  |  | 573,456 |
U.S. dollar denominated floating rate debt due through 2030 | 1,503,909 |  |  | 1,014,842 |
Total debt principal | 2,862,240 |  |  | 2,163,688 |
Less: unamortized debt issuance costs | (22,778) |  |  | (16,942) |
Less: current portion of long-term debt | (689,045) |  |  | (432,918) |
Total long-term debt | 2,150,417 |  |  | 1,713,828 |
The outstanding debt as of December 31, 2024, is repayable as follows:
Year ending December 31, 2024 | (in thousands of $)
2025 | 689,045 |
2026 | 507,697 |
2027 | 463,639 |
2028 | 316,264 |
2029 | 599,537 |
Thereafter | 286,058 |
Total debt principal | 2,862,240 |
Interest rate information
| December 31, 2024 |  | December 31, 2023
Weighted average interest rate on floating rate debt* | 5.96 | % |  | 6.49 | %
Weighted average interest rate on lease debt financing | 5.06 | % |  | 5.41 | %
Weighted average interest rate on fixed rate debt | 8.40 | % |  | 8.46 | %
U.S. Dollar London Interbank Offered Rate ("LIBOR"), 3-Month, closing rate** | — | % |  | 5.59 | %
Secured Overnight Financing Rate ("SOFR"), closing rate | 4.49 | % |  | 5.38 | %
Effective Federal Funds Rate ("EFFR"), closing rate | 4.33 | % |  | 5.33 | %
Norwegian Interbank Offered Rate ("NIBOR") | 4.68 | % |  | 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. ** LIBOR using panel bank contributions are no longer published after June 30, 2023. Since July 1, 2023, these settings were published under an unrepresentative synthetic methodology and ceas ed on September 30, 2024. Due to the discontinuance of LIBOR after June 30, 2023, and notwithstanding the automatic conversion mechanisms to alternative rates, the Company had entered into amendment agreements to existing loan agreements for the transition from LIBOR to SOFR. The Company elected to apply the optional expedient pursuant to ASC 848 for contracts within the scope of ASC 470. This meant that the Company accounted for amendments to loan agreements which related solely to the replacement of LIBOR as a benchmark rate to SOFR as if the modification was not substantial and thus a continuation of the existing contract. 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 Nordic high yield bond market. The bonds bore quarterly interest at NIBOR plus a margin and were redeemable in full on June 4, 2024. During the year ended December 31, 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 $0.4 million on the transaction. The net amount outstanding as of December 31, 2024 was NOK0.0 million equivalent to $0.0 million (December 31, 2023: 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 Nordic high yield bond market. The bonds bore quarterly interest at NIBOR plus a margin and were redeemable in full on January 21, 2025. During the year ended December 31, 2024, the Company purchased and redeemed in full, the outstanding bond with principal amount of NOK590 million equivalent to $56.1 million, incurring a loss of $0.4 million on the transaction. The net amount outstanding as of December 31, 2024 was NOK0.0 million equivalent to $0.0 million (December 31, 2023: NOK590 million, equivalent to $58.1 million). 7.25% senior unsecured sustainability-linked bonds due 2026 On May 12, 2021, the Company issued a senior unsecured sustainability-linked bond totaling $150 million in the Nordic credit market. The bonds bear quarterly interest at a fixed rate of 7.25% per annum and are redeemable in full on May 12, 2026. By the maturity date of the bond, the Company aims to have committed an amount at least equal to the size of the issue on upgrades of existing vessels and/or vessel acquisitions. The net amount outstanding as of December 31, 2024 was $150 million (December 31, 2023: $150 million). 8.875% senior unsecured sustainability-linked bonds due 2027 In February 2023, the Company issued a senior unsecured sustainability-linked bond totaling $150.0 million in the Nordic credit market. The bond was issued at a price of 99.58%. The difference between the face value and market value of the bond of $0.6 million will be amortized as an interest expense over the life of the bond. The bonds bear quarterly interest at a fixed rate of 8.875% of the nominal value per annum and are redeemable in full on February 1, 2027. By the maturity date of the bond, the Company aims to have committed an amount at least equal to the size of the issue on upgrades of existing vessels and/or vessel acquisitions. The net amount outstanding as of December 31, 2024, was $150.0 million (December 31, 2023: $150.0 million). $150 million senior secured term loan facility In April 2023, a wholly-owned subsidiary of the Company entered into a bilateral $150 million senior secured term loan facility, secured against a jack-up drilling rig. The Company has provided a full corporate guarantee for this facility, which bears interest at a fixed rate and has a term of approximately three years. The net amount outstanding as of December 31, 2024, was $147.4 million (December 31, 2023: $148.9 million). 8.25% senior unsecured sustainability-linked bonds due 2028 In April 2024, the Company issued a senior unsecured sustainability-linked bond (the “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, by a minimum of 2% by 2026. During the year ended December 31, 2024, the Company purchased Sustainability-Linked Bonds with principal amounts of $10.8 million, incurring a loss of $0.5 million on the transaction. During the year ended December 31, 2024, the Company resold Sustainability-Linked Bonds with principal amounts of $6.0 million which had previously been repurchased. The net amount outstanding as of December 31, 2024, was $145.2 million (December 31, 2023: $0.0 million). NOK750 million senior unsecured floating rate bonds due 2029 In September 2024, the Company issued a senior unsecured floating rate bond totaling NOK750 million in the Nordic high yield bond market. The bonds bear quarterly interest at NIBOR plus a margin and are redeemable in full on September 25, 2029. During the year ended December 31, 2024, the Company purchased bonds with principal amounts totaling NOK26 million equivalent to $2.4 million. The net amount outstanding as of December 31, 2024, was NOK724 million, which was equivalent to $63.6 million (December 31, 2023: NOK0.0 million, equivalent to $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 December 31, 2024 and December 31, 2023. The facilities bear interest at SOFR plus a margin, except the $60.0 million loan facility, which bears interest at EFFR plus a margin.
U.S. dollar floating rate debt | Corporate guarantee | Draw-down date | No. of subsidiaries † | Approx. term | Balance outstanding as of ($'millions),
December 31, 2024 | December 31, 2023
45 million secured term loan and revolving credit facility* | Full | 2014 | 7 | 11 | 27.5 |  | 32.5 |
20 million secured term loan facility* | Full | 2014 | 2 | 10 | — |  | 12.0 |
76 million secured term loan facility* | Part | 2017 | 2 | 7 | — |  | 43.5 |
175 million term loan facility* | Part | 2020 | 4 | 5 | — |  | 108.7 |
50 million senior secured credit facility* | Full | 2020 | 1 | 4 | — |  | 35.0 |
51 million term loan facility* | Part | 2021 | 1 | 4 | — |  | 39.0 |
51 million term loan facility* | Part | 2021 | 1 | 4 | — |  | 40.1 |
35 million term loan facility* | Part | 2021 | 1 | 7 | 28.8 |  | 30.9 |
107.3 million term loan facility* | Part | 2021 | 3 | 5 | 89.4 |  | 95.7 |
100 million term loan facility* | Part | 2022 | 4 | 5 | 72.3 |  | 82.3 |
23 million term loan facility* | Full | 2022 | 2 | 3 | 12.7 |  | 17.3 |
115 million term loan facility* | Part | 2022 | 8 | 3 | 70.0 |  | 90.0 |
144.6 million term loan facility* | Full | 2023 | 4 | 3 | 126.7 |  | 136.9 |
23.3 million term loan facility** | Full | 2023 | 1 | 1 | — |  | 13.9 |
23.3 million term loan facility** | Full | 2023 | 1 | 1 | — |  | 18.6 |
150 million senior secured term loan facility** | Full | 2023 | 1 | 3 | 134.0 |  | 150.0 |
8.4 million senior unsecured term loan facility*** | — | 2023 | N/A | 3 | 8.4 |  | 8.4 |
60 million loan facility**** | Part | 2024 | 1 | N/A | 15.0 |  | 60.0 |
79.8 million term loan facility* | Part | 2024 | 2 | 5 | 78.7 |  | — |
163.8 million term loan facility* | Part | 2024 | 3 | 5 | 162.4 |  | — |
150 million term loan facility* | Part | 2024 | 3 | 6 | 145.2 |  | — |
226 million term loan facility** | Full | 2024 | 7 | 5 | 218.1 |  | — |
235 million term loan facility* | Full | 2024 | 4 | 5 | 233.1 |  | — |
81.6 million term loan facility* | Full | 2024 | 2 | 1 | 81.6 |  | — |
Total |  |  |  |  | 1,503.9 |  | 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, vessels 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 December 31, 2024, 11.8 million of the Company’s shares were on loan and in the custody of the borrowing bank. This facility provides up to $60.0 million cash collateral to us, callable at any time, pertinent to the shares lent. The facility is repayable on demand, by either party to the agreement. Lease Debt Financing Wholly-owned subsidiaries of the Company have entered into sale and leaseback transactions for the vessels that they own, through Japanese operating lease with call option financing structures. The vessels have been sold and leased back, with options to repurchase the vessels. These transactions did not qualify as sales under the U.S. GAAP sale and leaseback guidance and have thus been recorded as financing arrangements. The following table presents information on lease debt financing facilities outstanding as of December 31, 2024 and December 31, 2023.
Lease Debt Financing | Price of vessel sold and leased back ($' millions) | Lease start date | Approx. length of lease in years | First repurchase option | Balance outstanding as of ($'millions),
December 31, 2024 | December 31, 2023
$65 million lease debt financing | 65.0 | 2021 | 6 | 2026 | 43.8 |  | 49.4 |
$65 million lease debt financing | 65.0 | 2021 | 6 | 2026 | 44.1 |  | 49.5 |
$23.5 million lease debt financing | 23.5 | 2022 | 3 | 2025 | 11.8 |  | 16.3 |
$25.3 million lease debt financing | 25.3 | 2022 | 3 | 2025 | 13.4 |  | 18.0 |
$120 million lease debt financing | 120.0 | 2022 | 8 | 2029 | 97.9 |  | 108.4 |
$120 million lease debt financing | 120.0 | 2022 | 8 | 2029 | 99.4 |  | 109.7 |
$45 million lease debt financing | 45.0 | 2023 | 5 | 2028 | 36.7 |  | 41.7 |
$38.5 million lease debt financing | 38.5 | 2023 | 9 | 2028 | 34.7 |  | 37.3 |
$72.2 million lease debt financing | 72.2 | 2023 | 12 | 2033 | 67.7 |  | 71.2 |
$72.2 million lease debt financing | 72.2 | 2023 | 12 | 2033 | 68.5 |  | 72.0 |
$77.5 million lease debt financing | 77.5 | 2024 | 12 | 2033 | 73.9 |  | — |
$77.5 million lease debt financing | 77.5 | 2024 | 12 | 2033 | 74.7 |  | — |
$37 million lease debt financing | 37.0 | 2024 | 8 | 2028 | 35.6 |  | — |
Total |  |  |  |  | 702.2 |  | 573.5 |
The aggregate book value of assets pledged as security against bo rrowings as of December 31, 2024, was $3.5 billion (December 31, 2023: $2.6 billion). Agreements related to long-term debt provide limitations on the amount of total borrowings and secured debt, and acceleration of payment under certain circumstances, including failure to satisfy certain financial covenants. As of December 31, 2024, the Company is in compliance with all of the covenants under its long-term debt facilities.

X
- Definition The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 470 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147481544/470-10-50-6 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 470 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147481544/470-10-50-6 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 405 -SubTopic 40 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org/1943274/2147477092/405-40-50-1 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 405 -SubTopic 40 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (a)(3) -Publisher FASB -URI https://asc.fasb.org/1943274/2147477092/405-40-50-1 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 405 -SubTopic 40 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (a)(2) -Publisher FASB -URI https://asc.fasb.org/1943274/2147477092/405-40-50-1 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 405 -SubTopic 40 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (a)(1) -Publisher FASB -URI https://asc.fasb.org/1943274/2147477092/405-40-50-1 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 405 -SubTopic 40 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147477092/405-40-50-1 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 470 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1B -Subparagraph (h) -Publisher FASB -URI https://asc.fasb.org/1943274/2147481139/470-20-50-1B Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 235 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(c)) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480678/235-10-S99-1 Reference 10: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 470 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/470/tableOfContent Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Topic 835 -SubTopic 30 -Name Accounting Standards Codification -Section 45 -Paragraph 2 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482925/835-30-45-2 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Topic 470 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1B -Publisher FASB -URI https://asc.fasb.org/1943274/2147481139/470-20-50-1B Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Topic 470 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1B -Subparagraph (g) -Publisher FASB -URI https://asc.fasb.org/1943274/2147481139/470-20-50-1B Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Topic 470 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1B -Subparagraph (i) -Publisher FASB -URI https://asc.fasb.org/1943274/2147481139/470-20-50-1B Reference 15: http://www.xbrl.org/2003/role/disclosureRef -Topic 470 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1C -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147481139/470-20-50-1C Reference 16: http://www.xbrl.org/2003/role/disclosureRef -Topic 470 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1C -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147481139/470-20-50-1C Reference 17: http://www.xbrl.org/2003/role/disclosureRef -Topic 470 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1C -Subparagraph (c) -Publisher FASB -URI https://asc.fasb.org/1943274/2147481139/470-20-50-1C Reference 18: http://www.xbrl.org/2003/role/disclosureRef -Topic 470 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1E -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147481139/470-20-50-1E Reference 19: http://www.xbrl.org/2003/role/disclosureRef -Topic 470 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1I -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147481139/470-20-50-1I Reference 20: http://www.xbrl.org/2003/role/disclosureRef -Topic 470 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1I -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147481139/470-20-50-1I Reference 21: http://www.xbrl.org/2003/role/disclosureRef -Topic 470 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1I -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org/1943274/2147481139/470-20-50-1I + Details
Name: | us-gaap_DebtDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- References No definition available. + Details
Name: | us-gaap_LongTermDebtByCurrentAndNoncurrentAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration