Navigator Gas expands bond issue by $40 million

LONDON - Navigator Holdings Ltd. (NYSE: NVGS), known as Navigator Gas, the operator of the world’s largest fleet of handysize liquefied gas carriers and currently valued at $927 million, has announced the successful completion of a $40 million tap issue in the Nordic bond market. According to InvestingPro data, the company maintains profitability with earnings of $1.19 per share over the last twelve months. The tap issue, conducted on March 28, 2025, comes under the company’s outstanding 7.25% senior unsecured bond issue set to mature in October 2029.

The additional funds raised through this tap issue bring the total borrowing under the bonds to $140 million, leaving $60 million available under the $200 million borrowing limit. Priced at par value, the proceeds from the tap issue are intended for general corporate purposes as outlined in the bond terms and the accompanying tap issue addendum. InvestingPro analysis indicates the stock is currently trading below its Fair Value, with 8 additional exclusive insights available to subscribers.

Arctic Securities and DNB Markets served as Joint Global Coordinators and Joint Bookrunners for the transaction. Clarksons Securities and Fearnley Securities also participated as Joint Bookrunners.

Navigator Gas’s fleet comprises 59 semi- or fully-refrigerated liquefied gas carriers, with 28 capable of handling ethylene and ethane. The company plays a significant role in the global supply chain for petrochemical gases, LPG, and ammonia. Additionally, Navigator Gas has a 50% share in an ethylene export marine terminal located at Morgan’s Point, Texas.

This expansion in the company’s bond issue reflects Navigator Gas’s ongoing financial activities and strategic initiatives to support its operations and growth. The information provided is based on a press release statement from Navigator Gas.

In other recent news, Navigator Holdings Ltd. reported its fourth-quarter earnings for 2024, surpassing analysts’ expectations with an earnings per share (EPS) of $0.38, compared to the forecasted $0.34. The company achieved revenue of $144 million, exceeding the anticipated $131.72 million, marking a 2% increase year-over-year. Navigator Holdings also completed an expansion of its ethylene export terminal, significantly increasing its capacity, which positions the company well to capitalize on growing U.S. natural gas liquids production and export capacity. Stifel analysts maintained a Buy rating on Navigator Holdings, with a $21.00 price target, highlighting the company’s robust performance despite challenges in the LPG shipping sector.

Stifel noted that the company’s handysize vessels showed resilience, and recent improvements in ethylene margins are expected to strengthen Navigator’s market position. The analysts anticipate that shipping rates for ethylene vessels will likely remain firm, benefiting the company as it expands this segment of its fleet. Navigator Holdings is also exploring a corporate redomicile to the UK or Denmark to enhance operational efficiency. The company’s adjusted EBITDA rose to $73.4 million from $72 million in the previous year, reflecting efficient cost management and operational enhancements. These developments reflect Navigator Holdings’ strong operational execution and strategic initiatives in the maritime transportation industry.

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