By Sara Rosenberg
New York, May 1 - Grey Wolf Inc. priced $150 million contingent convertible senior notes due 2023 to yield 3.75% with an initial conversion premium of 65% after market hours Thursday.
Deutsche Bank is the lead bank on the Rule 144A deal.
There is a $37.5 million greenshoe.
The convertibles are callable after five years at a slight premium to par and there are puts after 10 and 15 years.
The Houston provider of contract oil and gas land drilling services will use proceeds from the offering plus $15 million of available cash to partially redeem its 8 7/8% senior notes due 2007 on or after July 1. If the greenshoe option is exercised, the additional proceeds will be used for general corporate purposes.
Terms of the new deal are:
| Issuer: | Grey Wolf Inc.
|
| Issue: | Contingent convertible senior notes
|
| Amount: | $150 million
|
| Greenshoe: | $37.5 million
|
| Lead manager: | Deutsche Bank
|
| Maturity date: | May 7, 2023
|
| Coupon: | 3.75%
|
| Issue price: | Par
|
| Yield to maturity: | 3.75%
|
| Conversion premium: | 65%
|
| Conversion price: | $6.45
|
| Conversion ratio: | 155.0388
|
| Call: | Non-callable for five years, then at 101.88 on May 14, 2008
|
| Put: | In years 10 and 15
|
| Contingent conversion: | 110%
|
| Contingent payment: | 120%
|
| Ratings: | Moody's: B1
|
| S&P: B+
|
| Settlement date: | May 7, 2003
|
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