Golar LNG revises proposal for 2020, 2021 bonds; meeting rescheduled

By Wendy Van Sickle

Columbus, Ohio, April 17 – Golar LNG Partners LP is rescheduling a meeting for holders of two series after a revisions were made to a proposal for some amendments to the terms of the bonds, according to a news release.

Golar instructed Nordic Trustee to summon a meeting for holders of the bonds to be held on May 5 and to cancel the meeting scheduled for April 21.

As previously reported, the company is seeking to extend the maturity dates of its senior unsecured bond issues maturing May 2, 2020 (ISIN: NO0010736481) and May 15, 2021 (ISIN: NO0010736481).

The 2020 bonds were issued in 2015 in an original principal amount of $150 million.

The 2021 bonds were issued in 2017 in an original principal amount of $250 million.

The changes to the proposal primarily reflect a change in the split of the amortizations between the bonds in the period up to the interest payment dates in May 2021. These amortizations will now be split on an equal amount basis instead of the pro-rata split for the same period in the proposal announced on April 1, the company said on Friday.

The reviews proposal has received support of investors holding about 71% of the outstanding 2020 bonds and about 62% of the outstanding 2023 bonds, Golar reported.

A two thirds majority is required at the meeting to approve the amendment proposal.

As announced on April 1, Golar is seeking to extend the 2020 bonds to Nov. 22, 2021 and to increase the coupon to 6¼% from 4.4%.

Golar is seeking to extend the 2021 bonds to Nov. 15, 2022 and to increase the coupon to 8.1% from 6¼%.

“With the current turmoil in the Nordic and international capital markets due to the global Covid-19 pandemic and the ongoing oil price war, a refinancing of the bonds in the capital markets is currently not possible,” Golar said in the original meeting summons.

Golar is offering holders who consent to the changes an amendment fee of 0.5% of the principal amount of their notes, payable no later than 10 business days after the proposals have been approved by the required majority of bondholders.

To establish a quorum, at least two-thirds of the voting bonds of the relevant bond series must be represented at the meeting. In order for the proposal to pass, for each series, at least half of the bonds represented at the meeting must approve the proposal.

DNB Markets, Nordea Bank Abp, Danske Bank, Norwegian Branch and Skandinaviska Enskilda Banken AB (publ) are the issuer’s financial advisers regarding the proposal.

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

© 2015 Prospect News.
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