LONDON - Navigator (ELI:NVGR) Holdings Ltd. (NYSE:NVGS), the owner and operator of the world's largest fleet of handysize liquefied gas carriers, has announced the successful placement of $100 million in senior unsecured bonds in the Nordic bond market, with the new bonds set to mature in October 2029. The bonds will offer a fixed coupon rate of 7.25% per year, payable semi-annually.
The company has also exercised a call option to redeem its existing $100 million senior unsecured bonds, due in September 2025. These bonds will be redeemed on November 1, 2024, at 101.60% of their par value, plus any accrued and unpaid interest.
The proceeds from the bond issue are intended for general corporate purposes. Arctic Securities and DNB Markets served as joint global coordinators and joint bookrunners, while Clarksons Securities and Fearnley Securities acted as joint bookrunners.
Navigator Gas is a prominent player in the seaborne transportation of petrochemical gases, liquefied petroleum gas (LPG), and ammonia. The company owns a 50% share in an ethylene export marine terminal at Morgan's Point, Texas, and its fleet comprises 56 semi- or fully-refrigerated liquefied gas carriers, including 25 ethylene and ethane capable vessels.
The company's stock is publicly traded on the New York Stock Exchange under the symbol NVGS. This financial maneuver is part of Navigator Gas's broader strategy to manage its debt portfolio and fund its operations efficiently.
The information in this article is based on a press release statement from Navigator Holdings Ltd.
In other recent news, Navigator Gas posted strong financial results for the second quarter of 2024. The company reported an 8% increase in operating revenues and a record high adjusted EBITDA of $78 million, marking an improvement from the $69 million in Q2 of the previous year. These recent developments highlight the company's robust financial standing.
Navigator Gas is making strides in its expansion efforts, with advancements in its ethylene terminal and investments in clean ammonia. The company is also buying back shares, maintaining a high utilization rate, and renewing time charters at increased rates. These moves demonstrate the company's commitment to growth in the ammonia and petrochemical shipping markets.
Despite a temporary dip in throughput due to outages and Hurricane Beryl's impact, Navigator Gas remains on track with its plans. The company has a cash breakeven estimate of $20,800 per day for 2024 and expects continued demand for ammonia and petrochemical shipping. Additionally, Navigator Gas anticipates signing a new multi-year contract for expansion volumes and completing its ethylene export terminal expansion by the end of the year.
InvestingPro Insights
Navigator Holdings Ltd.'s recent bond issuance aligns with its strong financial position and growth trajectory. According to InvestingPro data, the company boasts a market capitalization of $1.1 billion and has demonstrated solid revenue growth of 11.73% over the last twelve months as of Q2 2024. This growth is complemented by an impressive EBITDA growth of 32.57% during the same period, indicating improved operational efficiency.
The company's financial health is further underscored by its profitability. An InvestingPro Tip highlights that Navigator Holdings has been profitable over the last twelve months, with a healthy gross profit margin of 56.82%. This profitability is expected to continue, as analysts predict the company will remain profitable this year.
Investors may find Navigator Holdings' valuation attractive. The company is trading at a P/E ratio of 14.05, which is considered low relative to its near-term earnings growth potential. This is supported by a PEG ratio of 0.28, suggesting the stock may be undervalued considering its growth prospects.
For those interested in dividend income, Navigator Holdings offers a dividend yield of 1.26%, with the last ex-dividend date on September 3, 2024. This, combined with the company's strong financials, may appeal to value-oriented investors.
InvestingPro offers additional insights, with 6 more tips available for Navigator Holdings. These tips could provide further clarity on the company's financial outlook and investment potential.
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