BW LPG has announced a significant capital-raising initiative, launching an offering of senior unsecured convertible bonds valued at approximately $300 million, maturing in 2031. This strategic move aims to bolster the company’s financial resources, primarily to support its ambitious newbuild program in collaboration with Hyundai Heavy Industries. The program involves building eight state-of-the-art Panamax Very Large Gas Carriers, which are expected to enhance the company’s operational capabilities and market position.
The convertible bonds will carry an attractive annual coupon rate, anticipated to fall within the range of 2% to 2.5%, with interest payments slated to be made semiannually. The bonds will be issued at par value, making them an appealing option for investors.
Investors will be able to convert their bonds at an initial conversion price that is projected to be at a premium of 35% to 40% over the applicable reference price of the company’s shares. This conversion price is subject to adjustments for dividends and other conventional factors, ensuring that the terms remain competitive and fair.
The bonds are set to mature on September 9, 2031, unless they are converted into shares, redeemed, or repurchased before that date. The company is facilitating this offering through an accelerated bookbuilding process, targeting eligible institutional investors outside of the United States. This approach reflects BW LPG’s strategy to attract a broad range of institutional support while optimizing its capital structure for future growth.
