In a filing with securities regulatorsin Oslo the operator announced the launch of what was described as an “institutionaloffering” of convertible notes with an initial principal of $175m and tenor of five-years.
“Such initialprincipal amount may be increased prior to pricing to up to $200m in the eventthe issuer exercises its up to $25m increase option in full,” Golden Oceanadded in a statement emailed to investors.
The senior unsecuredbonds will likely have an annual coupon in the range of 2.75 to 3.375% and aconversion premium of 30 to 35% over the volume-weighted-average price of theissuer’s Oslo-listed shares between the start and end of trading in Norway on17 January.
Golden Ocean, whichindicated the fundraiser will likely be wrapped up by the end of the month,said the notes are due to mature on 30 January 2019 and pointed out that it maydecide to list them “on an exchange” at a later date but failed to elaboratefurther.
“The net proceedsof the bonds will be used to grow [Golden Ocean] with a focus on acquiringsailing vessels or vessels that are due for delivery within a short time frame,to part finance existing newbuilds and for general corporate purposes,” itsaid.
Observers are quickto note the owner doesn't seem interested in newbuildings but appears to want resales with near-term delivery, which may not come as a surprise sincethe recent avalanche of orders has made it difficult to secure slots at topyards with delivery prior to 2016.
Golden Ocean GroupLtd led by Herman Billung and boasts offices in Bermuda and Norway where it oversees a fleetof nearly 30 bulkers. According to the Clarkson database it also controls eight60,000-dwt newbuildings that are due for delivery between 2015 and 2016.
