Golar LNG to sell $350 million five-year convertible notes to yield 2.5%-3%, up 32.5%-37.5%

By Stephanie N. Rotondo

Seattle, Feb. 13 – Golar LNG Ltd. is selling $350 million of convertible senior notes due Feb. 15, 2022 via a Rule 144A offering, the company said in a press release on Monday.

The deal is talked with a 2.5% to 3% yield and an initial conversion premium of 32.5% to 37.5%.

ABG Sundal Collier, BofA Merrill Lynch, Citigroup Global Markets Inc. and Morgan Stanley & Co. LLC are the joint bookrunners.

Pricing is expected ahead of Tuesday’s open.

The deal will also include a $52.5 million over-allotment option.

Conversions will be settled in cash, common stock, or a combination of the two, at the company’s option.

Interest will be payable semiannually.

The convertibles will not be callable or putable. However, the company will have the option of redeeming the issue, but only if 90% of the principal amount has been converted.

The company intends to use part of the proceeds from the deal to enter into capped call transactions. Options counterparties may also enter into derivative transactions to hedge their positions.

Aside from the capped calls, proceeds will be used for general corporate purposes.

Golar is a Hamilton, Bermuda-based liquefied natural gas shipping company.

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