By Rebecca Melvin
New York, Oct. 31 – Pacific Basin Shipping Ltd. wholly owned subsidiary PB Issuer (No. 5) Ltd. has priced $175 million of convertible bonds due 2025 at par to yield 3% with an initial conversion premium of 31.87%, according to a company announcement.
BNP Paribas, HSBC Ltd. and DNB Markets are the joint lead managers for the Regulation S deal, which is guaranteed by Pacific Basin.
The bonds are convertible from Jan. 20, 2020 to Nov. 30, 2025.
The bonds are putable on Dec. 10, 2023 at par, and there is takeover protection.
The issuer can redeem the bond if less than 10% remains outstanding.
Proceeds will be used to fund the expansion and renewal of the company’s fleet of Handysize and Supramax vessels and for general corporate purposes.
Hong Kong-based Pacific Basin is an owner and operator of dry bulk vessels.
| Issuer: | PB Issuer (No. 5) Ltd.
|
| Guarantor: | Pacific Basin Shipping Ltd.
|
| Issue: | Convertible bonds
|
| Amount: | $175 million
|
| Maturity: | 2025
|
| Bookrunners: | BNP Paribas, HSBC Ltd. and DNB Markets
|
| Coupon: | 3%
|
| Price: | Par
|
| Yield: | 3%
|
| Conversion premium: | 31.87%
|
| Conversion price: | HK$2.40
|
| Put: | On Dec. 10, 2023 at par
|
| Takeover protection: | Yes
|
| Clean up call: | Yes
|
| Announcement date: | Oct. 31
|
| Distribution: | Regulation S
|
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