BW Group launches up to USD 250 million Exchangeable Bonds due 2019 exchangeable into common shares of BW LPG
BW Group Limited announces today the launch of an offering of senior secured bonds due 2019 exchangeable into common shares of BW LPG Limited with a base size of USD 200 million, which may be increased up to a maximum of USD 250 million at or prior to pricing upon the exercise by the Issuer of an up to USD 50 million increase option, the company said in its press release.
The Bonds will bear interest at a fixed rate coupon, within a range of between 1.50% to 2.00% per annum, payable semi-annually in arrear.
The initial exchange price of the Bonds will be set at a premium of between 30% and 35% to the volume weighted average price of the Shares on the Oslo Stock Exchange (converted into USD at the prevailing USD:NOK spot rate at the time of pricing) between launch and pricing on 3 September 2014.
The Bonds will constitute direct, unconditional and unsubordinated obligations of the Issuer and will be secured by a first priority security by way of pledge, governed by Norwegian law, in respect of the Pledged Property. The “Pledged Property” will on issue of the Bonds comprise Shares representing a collateral ratio of 200 per cent of the number of Shares underlying the Bonds at the initial exchange price. Up to 50 per cent of the Shares initially comprising the Pledged Property may be borrowed from time to time by Nordea Bank AB pursuant to a stock lending agreement with the Issuer.
The Bonds will be issued at 100% of their principal amount in the denomination of USD 200,000 each and, unless previously exchanged, redeemed or purchased and cancelled, will be redeemed at 100% of their principal amount at maturity in September 2019. Upon exchange, the Issuer will have the option to deliver Shares and/or cash.
The Issuer has the right to call the Bonds at par plus accrued interest at any time if less than 15% of the Bonds originally issued remain outstanding.
About BW Group
BW Group is a leading global maritime group involved in oil and gas transportation, floating gas infrastructure, environmental technologies and deepwater production. Through its predecessor companies, Bergesen and World-Wide Shipping, BW has been delivering energy and other vital commodities for more than 75 years. BW's fleet of over 140 vessels includes crude oil supertankers, refined oil tankers, LNG and LPG carriers, chemical tankers and floating production storage and offloading (FPSO) units.
