Liquefied gas shipper BW LPG slides after $300 mln convertible bond offering
BUZZ-Liquefied gas shipper BW LPG slides after $300 mln convertible bond offering ** U.S.-listed shares of Singapore's BW LPG BWPL.N down 5.2% at $22.95 premarket on Weds after capital raise news
** Liquefied petroleum gas shipper announced placement of $300 mln 2.25% convertible bonds due Sept 9, 2031
** Conversion price of $30.49 represents 40% premium over reference share price
** Reference price of about $21.78 equates to the price of a concurrent delta share placement to facilitate investor hedging minus upcoming $0.95/sh cash dividend
** Citigroup and DNB Bank ASA joint global coordinating bookrunners for offering
** Co intends to use net proceeds to help finance newbuild program with HD Hyundai Heavy Industries 329180.KS for eight Panamax VLGCs (very large gas carriers), and for general corporate purposes
** BWPL in May entered agreement with South Korean shipbuilder Hyundai Heavy for construction of the Panamax vessels for about $940 mln
** Through Tues close, U.S.-listed BWPL shares surged ~86% giving co nearly $4 bln market cap
(Lance Tupper is a Reuters market analyst. The views expressed are his own)
((lance.tupper@tr.com 1-646-279-6380))