Golar LNG Prices Bond Offering (Bermuda)

Golar LNG Limited said that it has priced an offering of secured convertible bonds with a five-year tenor.

The offering size is USD 250 million, including the upsize option of USD 50 million, which has been exercised in full. The Bonds (each with a denomination of USD 100,000) were offered in an accelerated bookbuilding to institutional investors outside of the U.S. only, Golar LNG said in a statement.

The Bonds are convertible into common shares of the Company. The Bonds will have a coupon of 3.75% payable quarterly in arrear and a conversion price of USD 55.0 representing a premium of 25.0% over the reference Price of USD 44.0.

The Bonds will be secured by a pledge over subordinated units held by Golar LNG in Golar LNG Partners LP. The Bonds will be issued and redeemed at 100% of their principal amount and will, unless previously redeemed, converted or purchased and cancelled, mature on 7 March 2017. The Bonds are expected to be settled on or around 7 March 2012. The Bonds will not be listed on issue but Golar LNG may decide to list the Bonds on an exchange at a later stage.

Golar LNG said that the proceeds from the Bonds will be used for growth capital expenditure, repayment of short-term facilities and general corporate purposes.

Golar LNG has a total of eleven LNG carriers and two floating storage and regasification units (FSRU’s) on order and is in addition actively involved in bidding processes for FSRU projects.

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LNG World News Staff, February 29, 2012