Golar LNG Limited announced the closing of its private bond issuance amounting to a total of $575mn through senior convertible notes maturing in December 2030. These bonds, carrying an annual interest rate of 2.75%, offer holders the option to convert them into ordinary shares of the company, cash, or a combination of both, at the company’s discretion.
Technical details of the bond issuance
The initial issuance of $500mn was increased to $575mn following the full exercise of an additional purchase option of $75mn by the initial buyers. These bonds are exclusively intended for qualified institutional buyers, pursuant to Rule 144A of the United States Securities Act of 1933. Each bond tranche with a nominal value of $1,000 can be converted into 17.3834 common shares, representing an initial conversion price of approximately $57.53 per share, corresponding to an initial premium of approximately 40% compared to the closing price of $41.09 recorded on June 25, 2025.
Interest on these convertible bonds will be paid semi-annually on June 15 and December 15 each year, starting from December 15, 2025, until maturity in 2030.
Share repurchase and adjustment of share capital
Simultaneously with this bond issuance, Golar LNG used a portion of the raised funds to repurchase 2.5 million of the company’s common shares. These shares will be permanently cancelled, thereby reducing the total number of outstanding shares to 102.3 million, down from the previous 104.8 million.
According to the announcement, the remaining funds raised will be allocated to financing various general corporate activities. Among these projects are potential growth investments, including a contemplated fourth Floating Liquefied Natural Gas (FLNG) unit, conversion costs for the MKII FLNG project, as well as expenses associated with the redeployment of the FLNG Hilli unit.
Strategic and financial objectives
The group also indicated that the proceeds might be used to repay existing debt, strengthen working capital, and finance future capital expenditures. At this stage, no precise details have been communicated regarding the exact allocation of these amounts among the announced potential projects.
This issuance comes as companies in the energy sector seek to diversify their financing sources and optimise their financial structures within a global economic context characterised by volatile hydrocarbon prices and constant operational efficiency initiatives.
