The bonds will mature in July 2021 and may be converted into ordinary shares at an initial conversion price of HKD 4.08 amounting to a 37.5% premium over today’s closing price.
Hong Kong listed Pacific Basin said the issue of the guaranteed bonds was part of strategy of utilising external capital in the form of bank loans, equity and convertible bonds.
The funds will not be used for fleet expansion but for general corporate purposes.
“As part of our overall financing plan, we regularly seek out funding opportunities which we consider attractive and beneficial to our shareholders,” said Pacific Basin chief executive, Mats Berglund. “This Convertible Bond issue represents an opportunity for us to access the convertible market on attractive terms, and will raise funds which we intend to use primarily to maintain the Group’s balance sheet strength and liquidity and to continue to proactively manage our upcoming liabilities including our existing convertible bonds.”
Shareholder approval for the convertible bond issue – the fourth Pacific Basin has made - is to be sought at a special general meeting to be convened in late May.
Goldman Sachs and HSBC are acting as the joint Lead Managers for the Convertible Bonds.
Pacific Basin has a fleet of about 240 bulk carriers including newbuildings on order and through PB Towage a fleet of 20 ocean going tugs and offshore support vessels.
