Pacific Basin Shipping gives early result of conversion offer for 3% convertibles due 2025

By Rebecca Melvin

New York, April 27 – Pacific Basin Shipping Ltd. announced the early result of its offer to convert up to 60% of the outstanding 3% guaranteed convertible bonds due 2025 (ISIN: XS2065522398), or $105 million of the $175 million principal amount outstanding.

As of 3 a.m. ET on April 26, holders of the convertibles had submitted irrevocable undertakings for $76,819,000 of the bonds, which will be converted into 311,897,080 conversion shares, based on the conversion price of HK$1.93 per share.

The early cash incentive that is part of the company’s conversion offer is based on the maximum acceptance amount, and will results in a payment of $15,225,000 if the entire maximum acceptance amount is submitted for conversion.

Assuming full conversion of the maximum amount, the eligible bonds will be convertible into 426,316,321 shares, representing about 8.83% of the issued share capital of the company as of April 25.

The offer will close at 3 a.m. ET on April 28, at which time the company will make a final announcement regarding the bonds that are being converted and the resulting final outstanding principal amount of the issue.

Settlement is expected to occur on May 6.

The company is guarantor of the issue and PB Issuer (No. 5) Ltd., a wholly owned subsidiary of Pacific Basin, is issuer.

HSBC (gibprojectpentagon@hsbc.com.hk) is the dealer manager of the conversion offer. Bondholders who want to participate should send a conversion notice to hkpayingagentctla@hsbc.com.hk or instruct their custodian to submit the same conversion instruction via Euroclear Bank SA/NV or Clearstream Banking SA. Holders are required to send a copy of the conversion notice to the dealer manager.

Pacific Basin Shipping is a dry bulk shipping company based in Hong Kong.

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