US LPG carrier owner Navigator Holdings has not managed to entice any bondholders to sell up in a tender offer this month.
An offer made to buy back a portion of its five-year NOK 600m ($69m) notes series due in 2023 was made on 11 February.
The owner and operator of the world’s largest fleet of handysize LPG vessels intended to spend money it made from selling the 22,085-cbm Navigator Neptune (built 2000) to an unnamed buyer, which brokers now report was Ever Spirit Shipping of Hong Kong.
Navigator eventually offered to spend $20.58m at a price of 102% of par value, plus accrued interest
“No bonds have been validly tendered pursuant to the tender offer,” the company told the Oslo stock exchange on Friday.
The company will now keep the cash and NOK 600m will remain outstanding under the bonds.
The LPG carrier formed part of the collateral under the notes.
VesselsValue rates the ship as worth $14.5m.
Fearnley Securities said earlier this year the shipowner was poised to “pay up” for holders to accept the offer, as the bond was trading around the prevailing call price of par plus 2.8%.
Bond well-covered
The investment bank believes the bond is well covered with three remaining collateral vessels, as well as proceeds from the Navigator Neptune sale should bondholders not accept the tender offer.
There is also a highly valuable guarantee and share pledge over the shipowner’s equity interest in the Morgan’s Point joint venture terminal with Enterprise in Texas, the analysts said.
The bond was issued in 2018 to finance this development.
Navigator’s fleet now consists of 54 semi or fully refrigerated carriers, 21 of which are ethylene and ethane capable.
