By Kenneth Lim
Boston, April 20 - Delta Petroleum Corp. priced $100 million of 30-year convertible senior notes within talk after the close on Thursday to yield 3.75% with an initial conversion premium of 48%.
The notes were offered at par. The deal was talked at a coupon of 3.25% to 3.75% and an initial conversion premium of 42% to 48%.
There is an over-allotment option for a further $15 million.
JPMorgan, Lehman Brothers and Deutsche Bank were the bookrunners of the registered offering.
There was a concurrent offering of 6.2 million shares of Delta Petroleum common stock at $20.50 per share with an over-allotment option for an additional 930,000 shares.
The notes are non-callable for the first five years. They may be put in years five, 10, 15, 20 and 25.
The notes have dividend and takeover protection.
Delta Petroleum, a Denver, Colo.-based oil and gas company, said the proceeds of the stock and convertible deals will be used to reduce $117 million of outstanding senior secured debt under its credit facility, and fund capital expenditures and other general purposes. The company will also redraw some or all of the amounts paid down on its credit facility.
| Issuer: | Delta Petroleum Corp.
|
| Issue: | Convertible senior notes
|
| Bookrunner: | JPMorgan, Lehman Brothers and Deutsche Bank
|
| Amount: | $100 million
|
| Greenshoe: | $15 million
|
| Maturity: | May 1, 2037
|
| Coupon: | 3.75%
|
| Price: | Par
|
| Yield: | 3.75%
|
| Conversion premium: | 48%
|
| Conversion price: | $30.34
|
| Conversion ratio: | 32.9598
|
| Dividend protection: | Yes
|
| Takeover protection: | Yes
|
| Call protection: | Non-callable before May 6, 2012
|
| Puts: | May 1, 2012; May 1, 2017; May 1, 2022; May 1, 2027; May 1, 2032
|
| Price talk: | 3.25%-3.75%, up 42%-48%
|
| Pricing date: | April 19 after the close
|
| Settlement date: | April 25
|
| Distribution: | Registered
|
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