Navigator Gas has mandated banks for a new senior unsecured bond issue.
Fixed income investor meetings arranged by Arctic Securities, DNB Markets, Clarksons Securities and Fearnley Securities will start on Tuesday, 15 October.
A new US dollar-denominated, five-year senior unsecured bond issue in the Nordic market may follow, subject to market conditions, Navigator Holdings said.
The net proceeds from the contemplated bond issue are intended to be used for the refinancing of Navigator’s existing $100m senior unsecured bonds, which have maturity in September 2025.
The proceeds will also be used for general corporate purposes.
In conjunction with the issue, the company will offer a conditional buyback of the 2025 bonds.
The New York-listed company intends to call the remaining net outstanding amount of the existing bonds in whole at the prevailing call price.
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.
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.”
