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BW LPG Successfully Places a USD 300 Million Offering of Senior Unsecured Convertible Bonds

BWLP
  • BW LPG successfully placed USD 300 million in senior unsecured convertible bonds due 2031.
  • The bonds carry a fixed coupon of 2.25% per annum payable semi-annually in March and September, commencing on 9 March 2027.
  • Net proceeds will partly finance a newbuild program for eight Panamax VLGCs with Hyundai Heavy Industries and cover general corporate purposes.
  • The initial conversion price is set at USD 30.4870 per share, reflecting a 40% premium adjusted for an upcoming USD 0.95 cash dividend.
  • Settlement of the bonds is expected to occur on or around 9 September 2026.
  • A concurrent delta placement involved subscribers selling existing shares to hedge market risk; the company received no proceeds from this sale.
  • Bonds will be redeemed at par on 9 September 2031 unless previously converted, redeemed, or cancelled.
  • The company may redeem bonds early if share parity exceeds USD 260,000 for a specified period or if 20% or less of the bonds remain outstanding.
  • Holders may require early redemption on the third anniversary or upon a change of control, free float event, or delisting event.
  • BW LPG operates approximately 50 LPG vessels, including 20 powered by dual-fuel technology, with an in-house trading division.