DHT Holdings Raises Fresh Funds, Agrees Convertibles Deal

Crude oil tanker owner DHT Holdings has reached agreements to exchange existing convertible notes due 2019.

Namely, the company entered into separate, privately negotiated exchange deals with certain holders of its outstanding 4.5% convertible senior notes due 2019 to exchange around USD 67.5 million aggregate principal amount of the existing notes for approximately USD 74.2 million aggregate principal amount of the company’s new 4.5% convertible senior notes due 2021.

Additionally, DHT Holdings entered into private placement purchase contracts with investors to issue USD 44.7 million aggregate principal amount of new 4.5% convertible senior notes due 2021 for gross proceeds of USD 41.6 million. The company expects to use the net proceeds of the private placement for general corporate purposes.

Upon the completion of the transactions, the aggregate principal amount of 2021 notes outstanding would be USD 119 million. The 2021 notes will be senior unsecured obligations of the company and rank pari passu with all of DHT’s other senior unsecured debt, including the existing notes, and senior to all of its present and future subordinated debt.

DHT informed that the 2021 notes will bear interest at a rate of 4.5% per annum on the principal amount accruing from August 21, 2018. Interest will be payable semiannually in arrears on February 15 and August 15 of each year, beginning on February 15, 2019.

The private exchanges and the private placement are each expected to close on or about August 21, 2018, subject in each case to customary closing conditions.