Golar LNG has announced plans to offer $500m in convertible senior notes due in 2030, subject to market conditions.
The offering will be made through a private placement to qualified institutional buyers, with an additional purchase option of up to $75m in notes.
The notes, set to mature on 15 December 2030, will be senior, unsecured obligations of Golar LNG, paying interest semi-annually.
Directors and officers of the company have shown interest in purchasing common shares from investors, while entities affiliated with the company’s directors are interested in purchasing notes at the initial offering price.
Convertible into common shares, cash, or a combination thereof, the notes will provide Golar LNG with the flexibility to elect the form of conversion.
The company plans to use the net proceeds for various corporate purposes including a potential fourth floating liquefied natural gas (FLNG) unit and other growth investments.
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By GlobalDataSpecifically, the funds will support the repurchase of up to 2.5 million of Golar LNG’s common shares, MKII FLNG unit conversion costs, Hilli FLNG unit redeployment, debt repayment, working capital and capital expenditures.
The offering aligns with the company’s strategic focus on expanding its FLNG operations and strengthening its financial position.
Golar LNG’s operations currently include two FLNG units, Hilli and Gimi, with another under construction. The company has also been involved in eight liquefied natural gas (LNG) carrier conversions.
To date, the FLNG unit Hilli has produced more than nine million tonnes of LNG.
Earlier this week, Golar LNG confirmed that the FLNG unit Gimi has reached the commercial operations date under a 20-year lease and operate agreement with bp for the Greater Tortue Ahmeyim project, located offshore Mauritania and Senegal.
