Golden Ocean cancels $100 million convertibles offering, citing unattractive, 'achievable' terms

By Rebecca Melvin

New York, Dec. 8 - Golden Ocean Group Ltd. cancelled a $100 million offering of five-year convertible bonds on Tuesday - the same day the deal was launched - citing unattractive "achievable terms," including coupon and dilution to existing shareholders.

Golden Ocean had planned to price the bonds to yield 4.375% to 4.875% with an initial conversion premium of 27.5% to 32.5% over the volume weighted average price of shares on the Oslo Stock Exchange, according to a news release.

The deal had a $25 million greenshoe and was being sold by ABG Sundal Collier Norge ASA as bookrunner and with First Securities AS as joint lead manager.

Golden Ocean said the cancellation wouldn't impinge on the company financially. It said it has "favorable financing alternatives in place and solid cash flow from operations and a strong liquidity position" and that proceeds were "purely to finance opportunistic investment and further expansion of the company."

Upon launching the offering earlier Tuesday, the company had said that proceeds were to have to been used for financing an existing ship building program, to improve the company's ability to react to market opportunities and for general corporate purposes.

The bonds were expected to settle by Dec. 22, and Golden Ocean was contemplating listing the bonds on an exchange at a later stage.

Incorporated in Hamilton, Bermuda, Golden Ocean is a dry bulk shipping company.

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