LNG carrier owner and operator GasLog has collected NOK 900 million (USD 98.4 million) from senior unsecured bonds due November 2024.
The bonds will carry a coupon of 3 months NIBOR + 6.25% which represents a reduction of 0.65% compared to the margin of 6.90% on the current GLOG02 bond, with maturity date of May 27, 2021.
The GLOG03 bonds will accordingly mature 3.5 years later than the GLOG02 bond at a time when GasLog anticipates that the LNG market “will be going through a period of strong growth, with approximately 80 million tonnes of new production capacity scheduled to come on line in 2023 and 2024 combined, based on Wood Mackenzie data.”
In connection with the placement of the new bond issue, the company has acquired around NOK 315 million (USD 34.4 million) of the GLOG02 bonds.
GasLog noted that the net proceeds from the bond issuance would be used for general corporate purposes and prepayment of debt. An application will be made for the bonds to be listed on Oslo Stock Exchange.