Liquefied gas shipper BW LPG slides after $300 mln convertible bond offering
BWLP•Recent share performance
Through Tuesday's close, U.S.-listed BWPL shares had surged about 86%, giving the company a market capitalization of nearly $4 billion.
Use of proceeds and financing details
Citigroup and DNB Bank ASA were joint global coordinating bookrunners for the offering.
The company said it intends to use net proceeds to help finance its newbuild program with HD Hyundai Heavy Industries 329180.KS for eight Panamax VLGCs (very large gas carriers), and for general corporate purposes.
BWPL in May entered an agreement with the South Korean shipbuilder Hyundai Heavy for construction of the Panamax vessels for about $940 million.
BW LPG shares fall after convertible bond offering
U.S.-listed shares of Singapore's BW LPG BWPL.N were down 5.2% at $22.95 premarket on Wednesday after the capital raise news.
The liquefied petroleum gas shipper announced a placement of $300 million of 2.25% convertible bonds due Sept. 9, 2031.
The conversion price of $30.49 represents a 40% premium over the reference share price.
The reference price of about equates to the price of a concurrent delta share placement to facilitate investor hedging, minus the upcoming .
