Golar LNG Limited Closes Significant Offering
Golar LNG Limited (NASDAQ: GLNG) has successfully completed its previously announced offering of 2.75% Convertible Senior Notes due 2030. This event, marked by a raised total of $575 million, underscores the company's strategic financial maneuvering. These notes were privately placed, targeting qualified institutional buyers, in a transaction complying with Rule 144A of the Securities Act.
Details of the Convertible Senior Notes
The newly issued Notes stand as senior, unsecured obligations for Golar LNG. They feature a modest annual interest rate of 2.75%, with semi-annual payments beginning on December 15, 2025. Notably, these Notes will mature on December 15, 2030. Investors will enjoy the flexibility of conversion options, wherein the Notes can be converted into common shares or cash, depending on the company's discretion.
The Initial Conversion Rate
For those keen on specifics, the initial conversion rate is set at approximately 17.3834 common shares per $1,000 principal amount. This translates to a conversion price near $57.53 per share, representing a 40% premium compared to the closing price of $41.09 on a recent date.
Share Repurchase Initiative
In conjunction with the receipt of net proceeds from the offering, Golar LNG has also executed a repurchase of 2.5 million of its common shares. Following this strategic move, the outstanding shares will be adjusted down to a total of 102.3 million. This action aligns with the company's efforts to enhance shareholder value.
Use of Proceeds
Looking ahead, Golar LNG plans to allocate the remaining net proceeds from the note's offering towards various corporate needs. This can include essential growth projects, like the anticipated fourth FLNG unit and financing for conversion costs, as well as maintaining operational efficiency through working capital and capital expenditures.
Compliance and Regulatory Information
It's essential to note that this announcement does not serve as an invitation to purchase or offer the Notes in any unlawful manner. The company ensures compliance with all regulatory measures. These Notes, along with the shares issuable upon their conversion, are not registered under the Securities Act and are to remain private offerings unless registered or exempt.
Understanding Forward-Looking Statements
The release includes forward-looking statements that reflect management’s expectations and estimates about future operations. It is crucial to recognize that such statements, while insightful, are not guarantees of future performance, and potential risks could lead to actual results varying from those anticipated.
Contact Information
For any investor inquiries, Golar LNG has designated contacts: Karl Fredrik Staubo as CEO, Eduardo Maranhão as CFO, and Stuart Buchanan as Head of Investor Relations. You can reach them at +44 207 063 7900 for any questions regarding this announcement or other investor-related matters.
Frequently Asked Questions
What are the main features of the Notes issued by Golar LNG?
The notes have a 2.75% annual interest, mature in 2030, and are convertible into common shares or cash.
How many common shares did Golar LNG repurchase?
Golar LNG repurchased 2.5 million common shares during this offering.
What does the company plan to do with the proceeds from the Notes?
The proceeds will be used for corporate purposes including growth investments and repaying indebtedness.
Who can I contact for investor inquiries related to this announcement?
Investors can contact Karl Fredrik Staubo, Eduardo Maranhão, or Stuart Buchanan at +44 207 063 7900.
Are the Notes registered under the Securities Act?
No, the Notes and the common stock upon conversion are not registered under the Securities Act.
