Golar seeks ways to address convertibles due 2017; liquidity is key

By Susanna Moon

Chicago, Feb. 29 – Golar LNG Ltd. said it is in discussions with financial institutions for options to address its convertible bonds due March 2017, which is shortly before GoFLNG Hilli is expected to begin operating.

Several proposals include an extension tabled by third parties such as the company’s bondholders, according to a 6-K filing with the Securities and Exchange Commission.

The bonds are secured by the majority of the Golar’s subordinated units in Golar Partners. These subordinated units will become common units in April 2016.

“The board is optimistic that an attractive solution can be found and will revert with a clearer plan for how this will be dealt with in connection with announcement of the first quarter 2016 results,” the filing noted.

“Clearly, preserving liquidity and the various challenges in achieving this continue to be a focus of the company. To this end, the board is pleased to see the addition of approximately $250 million to year-end liquidity. Management are also pursuing other specific opportunities to improve liquidity, address the maturing 2017 convertible bond and to fund future FLNG growth and downstream activities without raising new equity.”

Hamilton, Bermuda-based Golar LNG is an owner and operator of liquid natural gas carriers.

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