By Kenneth Lim
Boston, Nov. 1 - Core Laboratories NV on Tuesday priced $250 million of five-year exchangeable senior notes at the cheap end of talk, at a coupon of 0.25% and an initial exchange premium of 30%, with a reoffered price of 99.75.
The notes were talked at a coupon of 0% to 0.25% and an initial exchange premium of 30%.
The notes are issued by Core's subsidiary, Core Laboratories LP, but fully guaranteed by the parent. They will be exchangeable into Core's common stock.
There is an over-allotment option for a further $50 million.
Banc of America and Lehman Brothers were the bookrunners of the Rule 144A offering.
The notes are non-callable and non-putable.
There is a contingent exchange hurdle at 130% of the conversion price.
There is dividend and takeover protection.
Core, an Amsterdam-based provider of oil reservoir management services, said $72 million of the proceeds will be used to fund convertible note hedge and warrant transactions. About $101 million will be used to repay a revolving loan and another $98 million will be used to buy back Core common stock.
| Issuer: | Core Laboratories LP
|
| Issue: | Exchangeable senior notes
|
| Exchange property: | Core Laboratories NV common stock
|
| Bookrunners: | Banc of America and Lehman Brothers
|
| Amount: | $250 million
|
| Greenshoe: | $50 million
|
| Maturity: | Oct. 31, 2011
|
| Coupon: | 0.25%
|
| Price: | Par, reoffered at 99.75
|
| Yield: | 0.25%
|
| Conversion premium: | 30%
|
| Conversion price: | $94.76
|
| Conversion ratio: | 10.5533
|
| Contingent conversion: | 130%
|
| Dividend protection: | Yes
|
| Takeover protection: | Yes
|
| Call protection: | Non-callable
|
| Puts: | None
|
| Price talk: | 0%-0.25%, up 30%, reoffered at 99.75
|
| Pricing date: | Oct. 31, after the close
|
| Settlement date: | Nov. 6
|
| Guarantees: | Core Laboratories NV
|
| Distribution: | Rule 144A
|
© 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.
