By Rebecca Melvin
New York, Dec. 12 - Cobalt International Energy Inc. priced $1.2 billion of seven-year convertible senior notes early Wednesday at a discount to par of 99.25, a coupon of 2.625% and an initial conversion premium of 30%, according to a syndicate source.
The registered, off-the-shelf deal came overnight and at the talked price points for the coupon and premium and at the midpoint of price, which was talked at 99 to 99.5.
The deal has a $180 million greenshoe and was sold via bookrunners Morgan Stanley & Co. LLC and Goldman Sachs & Co.
The notes are non-callable for life, with no puts. There is takeover protection and net share settlement.
Proceeds from the offering will be used to fund Cobalt's capital expenditures and for general corporate purposes.
Houston-based Cobalt is an independent oil exploration and development company focused on deepwater U.S. Gulf of Mexico and offshore Angola and Gabon in West Africa.
| Issuer: | Cobalt International Energy Inc.
|
| Issue: | Convertible senior notes
|
| Amount: | $1.2 billion
|
| Greenshoe: | $180 million
|
| Maturity: | Dec. 1, 2019
|
| Bookrunners: | Morgan Stanley & Co. LLC, Goldman Sachs & Co.
|
| Coupon: | 2.625%
|
| Price: | 99.25, discount to par of 100
|
| Conversion premium: | 30%
|
| Conversion price: | $35.68
|
| Conversion ratio: | 28.0230
|
| Calls: | Non-callable
|
| Puts: | No puts
|
| Takeover protection: | Yes
|
| Net share settlement: | Yes
|
| Price talk: | 2.625% up 30%; pricing 99 to 99.5
|
| Pricing date: | Dec. 12, before the open
|
| Settlement date: | Dec. 17
|
| Distribution: | Registered, off the shelf
|
| Stock symbol: | NYSE: CIE
|
| Stock price: | $27.45 at close Dec. 11
|
| Market capitalization: | $10 billion
|
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