Golden Ocean repurchases $165 million convertible bonds

By Jennifer Chiou

New York, April 2 - Golden Ocean Group Ltd. announced that it reached an agreement to buy back Hemen Holding Ltd.'s $165 million position in its convertible bonds at a price of 35% of par.

Hemen Holding is the company's largest shareholder.

Golden Ocean added that similar offers have been given to four other significant remaining holders, but they have rejected this price. Now, $155 million of the bonds remains outstanding.

The company also said that it completed a placement of 180 million shares at a subscription price of NOK 4.10 per share, raising gross proceeds of about $110 million. The oversubscribed offering was announced on Wednesday for $100 million.

After completion of the issue, the company said it will have 456,990,107 shares outstanding.

Golden Ocean said that the equity infusion should put it in a position at which it can benefit from new opportunities in the dry-bulk market in the short to medium term.

Joint bookrunners in the equity offering were Fearnley Fonds ASA, DnB NOR Markets, Nordea Markets, First Securities ASA, Platou Securities ASA, Arctic Securities ASA and ABG Sundal Collier.

Golden Ocean is a Hamilton, Bermuda-based dry bulk shipping firm.

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