Linc Energy raises US$200M via SGX bond issue

THE BOURSE WHISPERER: Linc Energy (ASX: LNC) has raised US$200 million through the issue of senior, unsecured Convertible Bonds to be traded on the Singapore Exchange (SGX) and due to mature in 2018.

Linc Energy said the proceeds from the bond raising will be used to pay down existing debt.

The company said it expects the bonds will support and de-risk the commercialisation of its key assets as well as providing working capital for at least the next three years.

“The additional funding gives us the flexibility to accelerate the development of our energy portfolio,” Linc Energy chief executive officer Peter Bond said in the company’s announcement to the Australian Securities Exchange.

“It allows us the option to minimise third party equity in our existing projects such as Umiat or sub salt (on-shore) drilling in Texas, or to increase our equity participation in various UCG joint ventures.

“The Bonds provide us with low cost funding, which minimises the dilution for existing shareholders.

“I’m confident that by completing this offering the company now has a clear pathway for developing its key assets to the next stage of operational and financial maturity.”


Source: Company announcement


The bonds will rank as unsubordinated, unsecured obligations of Linc Energy and are intended to be listed on the Singapore Exchange Securities Trading Limited (SGX-ST).

The bonds, which have a five year maturity date, are convertible into ordinary shares of Linc Energy at the election of bondholders at any time and are non-callable for a period of two years.

The bonds have a fixed exchange rate of US$1.0463 per A$$1.00 and are convertible at a price of A$3.40 per share (subject to certain adjustments), which reflects a premium of 27.5% to the share closing price on 26 March 2013.