Deal annoucement

 
On Tuesday 14 February 2017, Golar LNG announced the pricing of a new convertible bond with a total size of USD 402.5 million. The convertible bonds will have a tenor of 5 years, a fixed coupon of 2.75% and a conversion premium of 35%.
The transaction was launched just after close of New York Stock Exchange on Monday 13th February with a base deal size of USD 350 million.  The convertible bonds were marketed with 2.50% to 3.00% coupon and 32.5% to 37.5% conversion premium. 
The deal was multiple times oversubscribed and the option to increase the deal size by 15% was exercised immediately.  Final pricing came at the “mid term” at 2.75% coupon and 35% premium.  The coupon compares well with the 4¼ years USD 225 million high yield bond of Golar LNP Partners placed earlier in February 2017 with an annual interest cost of around 8.00% (Libor +6.25%). 
 
The net proceeds will be used for general corporate purposes including repaying debt, funding working capital, for capital expenditures, and for the cost of a capped call derivatives contract.
This is the second convertible bond transaction ABGSC manages for Golar LNG

About Golar LNG Ltd

Golar LNG is one of the world`s largest independent owners and operators of LNG carriers with over 30 years of experience. They developed the first Floating Storage and Regasification Unit projects based on the conversion of existing LNG carriers. They are progressing plans to grow their business further upstream via Floating liquefaction, and become an integrated midstream player in the LNG industry.

Published: 3 Apr, 2017