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Published on 9/24/2009 in the Prospect News Convertibles Daily.

New Issue: Subsea 7 prices upsized $275 million five-year convertible bonds to yield 3.5%, up 37.5%

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

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