New York-listed gas player Navigator Gas has successfully placed $100m in senior unsecured bonds in the Nordic market, the company said on Thursday.

The Houston-based company was able to win a fixed coupon rate of 7.25% on the five-year bonds, whose proceeds will be used to refinance the outstanding portion of existing issuance in the same amount, scheduled to mature next September.

‘Pencils down’: Regulatory uncertainty keeps many US clean fuels projects on the shelf
 Read more

The new bonds are set to mature in October 2029. Interest will be paid semi-annually in arrears. Proceeds also will be used for general corporate purposes.

Navigator said the existing bonds will be taken out at 106.1% of par value plus accrued and unpaid interest.

Navigator is the owner and operator of the world’s largest fleet of handysize liquefied gas carriers.

It also owns a 50% share, through a joint venture, in an ethylene export marine terminal at Morgan’s Point, Texas on the Houston Ship Channel.

Fixed income investor meetings arranged by Arctic Securities, DNB Markets, Clarksons Securities and Fearnley Securities began on Tuesday in support of the new issuance.

Arctic Securities and DNB Markets acted as joint global coordinators and joint bookrunners, and Clarksons Securities and Fearnley Securities acted as joint bookrunners in the bond issue.

Navigator’s fleet consists of 56 semi- or fully refrigerated liquefied gas carriers, 25 of which are ethylene and ethane-capable.

In September, DNB Markets initiated coverage of the Navigator stock.

The Norwegian bank said: “In our view, Navigator Gas’ world-leading fleet of smaller liquefied gas carriers offers appealing exposure to the rapidly growing NGL [natural gas liquids] markets, with strong US fundamentals supporting exports and inventories, fuelling US-Far East arbitrage.”

Navigator shares were trading up slightly more than 1% to $16 in New York on Thursday afternoon.

Read more