By Rebecca Melvin
New York, Sept. 24 - Subsea 7 Inc. priced an upsized $275 million of five-year convertible senior unsecured bonds at par to yield 3.5% with an initial conversion premium of 37.5%, according to a release.
Initially the private placement was expected to be $200 million in size.
The deal priced at the rich end of talk, which was 3.5% to 4% for the coupon and 32.5% to 37.5% for the premium.
ABG Sundal Collier was bookrunner.
Proceeds will be used for refinancing convertible debt and for general corporate purposes.
Subsea has an issue of 2.8% convertibles that were priced in 2006 and are due in May 2011.
The reference price of the company`s shares was set at $13.08 (based on a volume weighted average price of NOK 76.02, and the exchange rate of NOK 5.81 per $1.00).
The total number of underlying common shares to be issued if all bonds are converted is about 15.3 million shares.
George Town, Cayman Islands-based Subsea 7 is an underwater engineering and construction contractor.
| Issuer: | Subsea 7 Inc.
|
| Issue: | Convertible senior secured bonds
|
| Bookrunners: | ABG Sundal Collier
|
| Amount: | $275 million, upsized from $200 million
|
| Maturity: | October 2014
|
| Coupon: | 3.5%
|
| Price: | Par
|
| Yield: | 3.5%
|
| Conversion premium: | 37.5%
|
| Conversion price: | $17.98
|
| Price talk: | 3.5%-4%, up 32.5%-37.5%
|
| Pricing date: | Sept. 24
|
| Settlement: | Oct. 13
|
| Stock reference price: | $13.08
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
