MOL Issued Euro USD Zero Coupon Convertible Bonds
OREANDA-NEWS. Mitsui O.S.K. Lines, Ltd. (the "Company") has resolved at the meeting of the Board of Directors held on April 8, 2014 to issue, and had issued on April 24, 2014 the USD 300,000,000 Zero Coupon Convertible Bonds due 2018 (the "2018 Bonds") and the USD 200,000,000 Zero Coupon Convertible Bonds due 2020 (the "2020 Bonds") (each being bonds with stock acquisition rights, tenkanshasaigata shinkabu yoyakuken-tsuki shasai).
In March 2014, the Company announced the "STEER FOR 2020", the three year mid-term management plan. In the plan, the Company sets out to transform its management policy into solid and quality growth. The company, as one of the growth strategies with its core competences, will focus on the businesses which are expected to generate a robust and stable profit such as liquefied natural gas ("LNG") carriers and offshore business. The proceeds of the Bonds will be used for the group's investments in vessels, including LNG carriers, to be built or delivered, and investments in the group's offshore business.
The Company has chosen to issue the Bonds because it believed that the issuance of the Bonds was most suitable for the financial objectives of the Company.
The Bonds have the characteristics as follows.
* The Bonds are expected to contribute to mitigate the foreign exchange risk of the Company which has a large number of U.S. Dollar-denominated assets and revenues through asset liability management.
* The Bonds is issued zero coupon despite being U.S. Dollar-denominated and, long term liability.
* The Bonds have a conversion price which is above the closing price (the "Closing Price") of the company shares (the "Share") reported by the Tokyo Stock Exchange, Inc. on the pricing date and it is expected to mitigate the dilution of the earnings per share.
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