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Hoegh LNG Preferred: 10.5% Yield After the Common Delisting
Hoegh LNG Partners delisted its common units in 2022, but the 10.5% preferred shares still trade OTC. The dividend has kept paying. The 2026 refinancing is the real test.
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Hoegh LNG Partners delisted its common units from the New York Stock Exchange in 2022. The 10.5% series A preferred shares (HMLPF) still trade over the counter. That structure creates a specific risk for income buyers.
Preferred stock in a company that has taken its common equity private is a different animal. Common holders lost their vote. Management has less incentive to keep the preferred dividend flowing if cash gets tight. HMLPF has paid every quarterly distribution since issuance. The underlying business – owning floating storage and regasification units (FSRUs) on long-term charters – still generates cash. Three FSRUs are contracted through the 2030s, with charter payments from investment-grade counterparties.
Hoegh LNG Holdings took the common units private at $9.00 in 2022. Preferred shareholders did not get a tender offer. That left the preferreds outstanding with no public common shares to anchor trading volume. Daily turnover on HMLPF is thin – often a few thousand shares. Anyone buying needs a limit order and patience on the exit.