BW LPG launches USD 300 million convertible bond offering

BW LPG Limited has launched an offering of senior unsecured convertible bonds with an aggregate principal amount of approximately USD 300 million. The bonds are set to mature on September 9, 2031.

The company intends to use the net proceeds to partially finance a newbuild program with Hyundai Heavy Industries for eight Panamax Very Large Gas Carriers (VLGCs), as well as for general corporate purposes. The bonds are expected to carry an annual interest rate between 2.00% and 2.50%, payable semi-annually.

The initial conversion price is projected to be at a premium of 35% to 40% above the share reference price. The offering is being conducted through an accelerated bookbuilding process targeting eligible institutional investors outside of the United States.