Golden Ocean Group Limited announces today the launch of a Reg S institutional offering of convertible bonds with an initial principal amount of USD 175 million and a five-year tenor. Such initial principal amount may be increased prior to pricing to up to USD 200 million in the event the Issuer exercises its up to USD 25 million increase option in full, the company said in its press release.
The senior unsecured bonds will be convertible into common shares of the Issuer. The Bonds are expected to have an annual coupon in a range of 2.75% and 3.375% payable semi-annually in arrear and to have a conversion premium of 30% to 35% over the volume weighted average price of the Issuer's shares on the Oslo Stock Exchange (converted at the prevailing USD:NOK spot rate at closing of the market on 17 January 2014) between opening and closing of the market on 17 January 2014.
The Bonds will be issued and redeemed at 100% of their principal amount and will, unless previously redeemed, be converted or purchased and cancelled, mature on 30 January 2019.
Golden Ocean has the right to call the Bonds at par plus accrued interest at any time if less than 10% of the Bonds originally issued remain outstanding. The Bonds are expected to be settled and delivered on 30 January 2014. Golden Ocean may decide to list the Bonds on an exchange at a later stage.
The net proceeds of the Bonds will be used to grow the Issuer with a focus on acquiring sailing vessels or vessels that are due for delivery within a short time frame, to part finance existing newbuilds and for general corporate purposes. The final terms of the Bonds are expected to be announced on 17 January 2014.