SOURCE: Golden Ocean Group

December 07, 2007 02:39 ET

GOGL - Launch of a $200 million convertible loan

HAMILTON, BERMUDA--(Marketwire - December 7, 2007) -

Golden Ocean Group Limited ("Golden Ocean" or the "Company") is pleased to announce that the Company intends to issue $200 million in principal amount of convertible bonds with a five-year tenor. The senior unsecured bonds will be convertible into common shares of the Company. The bonds are expected to have an annual coupon in the range of 3.125% and 3.625% payable semi-annually in arrear, and have a conversion premium of 40% to 45% over the volume weighted average price of the Company`s shares on the Oslo Stock Exchange (converted into $) at the time of pricing.

The convertible bonds will be issued and redeemed at 100% of their principal amount and will, unless previously redeemed, be converted or purchased and cancelled, mature in December 2012.

Golden Ocean has the right to call the bonds after three years, if the value of the Golden Ocean shares underlying one bond on the Oslo Stock Exchange (translated into $) exceeds, for a specified period of time, 130% of the principal amount of the bond. The bonds are expected to be settled on or around 20 December 2007. Golden Ocean may decide to list the bonds on an exchange at a later stage. The proceeds from the convertible bond offering will be used to part-finance the Company's newbuilding program.

ABG Sundal Collier Norge ASA is Sole Bookrunner for the Offering. ABG Sundal Collier Norge ASA and Nordea Bank Norge ASA are Joint Lead Managers.

7 December 2007 Hamilton, Bermuda

Contact Persons: Herman Billung: CEO, Golden Ocean Management AS +47 22 01 73 40

Geir Karlsen: CFO, Golden Ocean Management AS +47 22 01 73 53

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