Navigator Gas Announces Successful Placement of 5-year Senior Unsecured Bonds in the Nordic Bond Market

Rhea-AI Summary

Navigator Holdings (NYSE: NVGS), operating as Navigator Gas, has successfully placed USD 100 million of new senior unsecured bonds in the Nordic bond market. These bonds are set to mature in October 2029 and will offer a fixed coupon of 7.25% per annum, payable semi-annually. Concurrently, the company has announced its decision to redeem the remaining portion of its existing USD 100 million senior unsecured bonds, which were due to mature in September 2025. This redemption will occur on November 1, 2024, at a price of 101.60% of par value plus accrued interest. The net proceeds from the new bond issue will be utilized for general corporate purposes.

Positive

• Successfully placed USD 100 million of new senior unsecured bonds
• New bonds offer a fixed coupon of 7.25% per annum
• Extended debt maturity from 2025 to 2029

Negative

• Redemption of existing bonds at 101.60% of par value, incurring additional costs

Insights

Financial Analyst

Navigator Gas's successful placement of $100 million in senior unsecured bonds is a strategic move that strengthens the company's financial position. The 7.25% fixed coupon rate is relatively attractive in the current market, reflecting investor confidence in the company's creditworthiness. By extending the maturity to 2029, Navigator Gas has effectively managed its debt profile, reducing near-term refinancing risks.

The decision to redeem the existing bonds maturing in 2025 at 101.60% of par value demonstrates proactive liability management. While this incurs a slight premium, it allows the company to take advantage of current market conditions and potentially lower its overall interest expense. The use of proceeds for general corporate purposes provides financial flexibility, which could be directed towards fleet expansion, operational improvements, or strengthening the balance sheet.

For investors, this bond issuance signals Navigator Gas's ability to access capital markets and manage its debt effectively, which is important for a capital-intensive industry like shipping. The successful placement in the Nordic bond market also diversifies the company's funding sources, potentially opening doors for future financing opportunities.

Market Research Analyst

Navigator Gas's bond placement reflects broader trends in the shipping industry, where companies are seeking to optimize their capital structures amidst volatile market conditions. The handysize liquefied gas carrier segment, in which Navigator Gas holds a leading position, has shown resilience and growth potential, likely contributing to the favorable terms of this bond issue.

The 7.25% coupon rate is competitive, suggesting strong investor appetite for exposure to the liquefied gas transportation sector. This could be driven by expectations of continued growth in global gas trade, particularly in smaller-scale and regional markets where handysize vessels excel.

The involvement of reputable financial institutions as joint bookrunners adds credibility to the offering and indicates strong institutional interest. For retail investors, this bond issue provides insights into the company's financial strategy and market perception. The successful placement may positively impact Navigator Gas's stock price, as it demonstrates financial acumen and market confidence in the company's long-term prospects.

LONDON, Oct. 17, 2024 (GLOBE NEWSWIRE) -- Navigator Holdings Ltd. (described herein as “Navigator Gas” or the “Company”) (NYSE: NVGS), the owner and operator of the world’s largest fleet of handysize liquefied gas carriers, announces that today, it has successfully placed USD 100 million of new senior unsecured bonds in the Nordic bond market. The new bonds are due to mature in October 2029 and will pay a fixed coupon of 7.25% per annum, payable semi-annually in arrears.

In connection with the issue, Navigator has today notified Nordic Trustee AS of its exercise of the call option to redeem the remaining portion of the Company’s existing USD 100 million senior unsecured bonds, maturing in September 2025, with ISIN NO0010891955 (the “Existing Bonds”). The Existing Bonds will be redeemed at a price equal to 101.60% of par value (plus accrued and unpaid interest), with a redemption date of 1 November 2024. Net proceeds from the bond issue will otherwise be used for general corporate purposes.

Arctic Securities and DNB Markets acted as Joint Global Coordinators and Joint Bookrunners, and Clarksons Securities and Fearnley Securities acted as Joint Bookrunners in the bond issue.

About Navigator Gas

Navigator Holdings Ltd. (described herein as “Navigator Gas” or the “Company”) is the owner and operator of the world’s largest fleet of handysize liquefied gas carriers and a global leader in the seaborne transportation services of petrochemical gases, such as ethylene and ethane, liquefied petroleum gas (“LPG”) and ammonia and owns a 50% share, through a joint venture, in an ethylene export marine terminal at Morgan’s Point, Texas on the Houston Ship Channel, USA. Navigator Gas’ fleet consists of 56 semi- or fully-refrigerated liquefied gas carriers, 25 of which are ethylene and ethane capable. The Company plays a vital role in the liquefied gas supply chain for energy companies, industrial consumers and commodity traders, with its sophisticated vessels providing an efficient and reliable ‘floating pipeline’ between the parties, connecting the world today, creating a sustainable tomorrow.

Navigator Gas’ common stock trades on the New York Stock Exchange under the symbol “NVGS”.

Navigator Gas

Attention:	Investor Relations investorrelations@navigatorgas.com
	and randy.giveans@navigatorgas.com
Address:	333 Clay Street, Suite 2480, Houston, Texas, U.S.A. 77002
	Tel: +1 713 373 6197 and +44 (0)20 7340 4850

Investor Relations / Media Advisors

Nicolas Bornozis / Paul Lampoutis
Capital Link – New York
Tel: +1-212-661-7566
Email:   navigatorgas@capitallink.com

Forward looking statements

This press release contains certain “forward-looking” statements (as defined by the Securities and Exchange Commission) concerning plans and objectives of management for future operations or economic performance, or assumptions related thereto. In addition, we and our representatives may from time to time make other oral or written statements that are also forward-looking statements. In some cases, you can identify the forward-looking statements by the use of words such as “may,” “could,” “should,” “will,” “would,” “expect,” “plan,” “anticipate,” “intend,” “forecast,” “believe,” “estimate,” “predict,” “propose,” “potential,” “continue,” “scheduled,” or the negative of these terms or other comparable terminology.

These forward-looking statements involve many risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements. These risks and uncertainties include but are not limited to those set forth in the periodic reports Navigator files with the U.S. Securities and Exchange Commission.

All forward-looking statements included in this press release are made only as of the date of this press release. New factors emerge from time to time, and it is not possible for us to predict all of these factors. Further, we cannot assess the impact of each such factor on our business or the extent to which any factor, or combination of factors, may cause actual results to be materially different from those contained in any forward-looking statement. We expressly disclaim any obligation to update or revise any forward-looking statements, whether because of future events, new information, a change in our views or expectations, or otherwise. We make no prediction or statement about the performance of our common stock.

Category: Financial

FAQ

What is the size and maturity of Navigator Gas's new bond issue?

Navigator Gas (NYSE: NVGS) has issued USD 100 million in new senior unsecured bonds, set to mature in October 2029.

What is the coupon rate for Navigator Gas's new bonds?

The new bonds issued by Navigator Gas (NYSE: NVGS) offer a fixed coupon of 7.25% per annum, payable semi-annually.

When will Navigator Gas redeem its existing bonds?

Navigator Gas (NYSE: NVGS) will redeem its existing bonds on November 1, 2024, at 101.60% of par value plus accrued interest.

How will Navigator Gas use the proceeds from the new bond issue?

The net proceeds from Navigator Gas's (NYSE: NVGS) new bond issue will be used for general corporate purposes.