MOL Issues $500 Mln in Bonds

Mitsui O.S.K. Lines, Ltd. has issued the $300,000,000 Zero Coupon Convertible Bonds due in 2018 (the 2018 Bonds) and the $200,000,000 Zero Coupon Convertible Bonds due in 2020 (the 2020 Bonds).

In March 2014, the company announced the “STEER FOR 2020”, the three year mid-term management plan. In the plan, the company announced decision to transform its management policy into solid and quality growth.

The proceeds of the Bonds will be used for the group’s investments in vessels, including LNG carriers, to be built or delivered, and investments in the group’s offshore business.

The Bonds have the characteristics as follows:

• The Bonds are expected to contribute to mitigate the foreign exchange risk of the company which has a large number of U.S. Dollar-denominated assets and revenues through asset liability management.
• The Bonds is issued zero coupon despite being U.S. Dollar-denominated and, long term liability.
• The Bonds have a conversion price which is above the closing price (the “Closing Price”) of the company shares (the “Share”) reported by the Tokyo Stock Exchange, Inc. on the pricing date and it is expected to mitigate the dilution of the earnings per share.

[mappress]
mol, April 25, 2014