By Susanna Moon
Chicago, Nov. 13 – Green Dragon Gas Ltd. said it issued $88 million of 10% three-year senior secured bonds to launch its drilling program.
The bonds will be redeemed at 102% of par and are callable at 107, 105, 103 at the 12-, 18-, 24- and 30-month anniversaries, according to a company press release.
The bond is secured by a pledge over the shares of Greka Gas China Ltd., a wholly owned subsidiary of Green Dragon Gas.
Pareto Securities is the bookrunner and manager, with Investec Bank plc as co-manager.
Proceeds will be used to launch the company’s drilling program of 150 LiFaBriC wells at the commercial gas production block Shizhuang South with up to 50 of the wells being funded through this closing, for the refinancing of debt and for general corporate purposes.
“We are pleased with this debt issuance as it marks the first public debt capital raised by the company,” Randeep S. Grewal, founder and chairman of Green Dragon, said in the press release.
“Since inception, Green Dragon has funded its discretionary growth through equity or convertible debt issuances resulting in the current net equity being in excess of $600 million. We expect to fund our continued growth with disciplined debt issuances so as to gradually increase the current debt to equity from 8% to 25% over time.”
Green Dragon is a gas production company with offices in Beijing.
Issuer: | Green Dragon Gas Ltd.
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Issue: | Bonds
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Amount: | $88 million
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Maturity: | Nov. 20, 2017
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Coupon: | 10%
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Redemption: | At 102 at maturity
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Call: | At 107, 105, 103 at the 12-, 18-, 24- and 30-month anniversaries
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Bookrunner: | Pareto Securities
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Announcement date: | Nov. 13
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