Pacific Basin $175m bonds

Hong Kong listed shipowner and operator Pacific Basin Shipping will raise $175 million via selling convertible bonds. Mats Henrik Berglund led Pacific Basin Shipping will use the money for fleet expansion, renewal and general corporate purposes. Pacific Basin Shipping’s bonds would mature in December 2025 with a bondholder’s put option in December 2023. Pacific Basin Shipping’s bonds initial conversion price is set at $0.31 (HKD $2.4) per share, representing a 31.9% premium on closing share price of October 31, 2019. According to CEO Pacific Basin Shipping’s CEO Mats Henrik Berglund, $175 million bond plan is attractive and beneficial to shareholders. $175 million bond plan is on attractive terms which would enhance the Pacific Basin Shipping’s balance sheet and liquidity position to support the organic expansion and renewal of fleet. Out of $175 million bond plan, $49.5 million would be used to fund earlier acquisition of four handysize bulk carriers.
In September 2019, Pacific Basin Shipping acquired two (2) supramax and two (2) handysize bulk carriers for $73.8 million. In September 2019, Pacific Basin Shipping was planning to fund the acquisition of four (4) second hand bulk carriers with cash and selling new shares worth $24.4 million. HSBC, BNP Paribas and DNB Banks are acting as the joint lead managers for $175 million bond issue which is subject to Pacific Basin Shipping’s shareholders’ approval.