BW LPG places $300M convertible bond offering due 2031

BW LPG Limited (NYSE: BWLP) has placed $300 million in senior unsecured convertible bonds maturing in 2031, according to a press release from the Singapore-based company.

The bonds carry a fixed coupon of 2.25% per annum, payable semi-annually, with settlement expected on or around September 9, 2026. The initial conversion price was set at $30.4870 per share, representing a 40% premium over the reference share price, adjusted for a cash dividend of $0.95 per share payable around September 16, 2026.

BW LPG said it intends to use the net proceeds to partly finance a newbuild program with Hyundai Heavy Industries for eight Panamax Very Large Gas Carriers (VLGCs), with the remainder allocated to general corporate purposes.

The bonds will be issued at par in denominations of $200,000 and redeemed at par on September 9, 2031, unless previously converted, redeemed, or cancelled. The company holds an option to redeem all outstanding bonds on or after September 30, 2029, under certain conditions, including if the parity value of the underlying shares meets or exceeds $260,000 on at least 20 dealing days within a 30-consecutive dealing day period.

Bondholders may require early redemption at par on the third anniversary of issuance or upon a change of control, a free float event, or a delisting event.

Concurrently with the bond placement, the sole placement agent conducted a delta placement of existing shares on behalf of certain bond subscribers seeking to hedge market risk. BW LPG said it received no proceeds from that transaction.

BW LPG operates a fleet of approximately 50 VLGCs and Large Gas Carriers, including 20 vessels with LPG dual-fuel propulsion technology.

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