Golar LNG Ltd has announced the commencement of a registered offering of 11 000 000 shares of its common stock. Following this, the company revealed the pricing of its registered offering of 11 000 000 shares of its common stock, par value US$ 1.00 per share, at a price to the public of US$ 54.00 per share.
The company granted the underwriters a 30-day option to purchase up to an additional 1 650 000 common shares The proceeds of the offering are expected to be used to fully fund initial milestone payments under a conditional agreement (the Conversion Agreement) with Singapore's Keppel Shipyard Limited in connection with the conversion of an LNG carrier, the Hilli, to a floating LNG (FLNG) vessel. The proceeds will also partly fund other future scheduled payments under the Conversion Agreement.
Depending on the timing of these future scheduled payments, Golar LNG Ltd may temporarily invest the remaining funds on a short-term basis or use the funds for other general corporate purposes. The offering is scheduled to close on June 30, 2014, subject to customary closing conditions.
BofA Merrill Lynch, Goldman, Sachs & Co., Morgan Stanley and RS Platou Markets AS are acting as joint book-running managers and Arctic Securities, DNB Markets, Fearnley Securities and Pareto Securities are acting as co-managers in the offering.
Adapted from press release by Ted Monroe