By Rebecca Melvin
New York, July 18 - Endeavour International Corp. priced an upsized $120 million of five-year convertible bonds after the market close Monday at par to yield 5.5%, with an initial conversion premium of 30%, according to a syndicate source.
There is a $15 million greenshoe, which was not upsized.
The Rule 144A deal, which was originally going to be $110 million in size, priced at the midpoint of original coupon talk, which was 5.25% to 5.75%, and beyond the rich end of revised talk for the initial conversion premium, which was 22.5% to 27.5%, according to market sources.
Bookrunners were Citigroup Global Markets Inc. and Morgan Stanley & Co. Inc.
The bonds are non-callable with no investor puts. There is standard takeover and dividend protection.
Substantially all proceeds are earmarked for a pending acquisition of acreage and related midstream assets in the Marcellus shale play. Any remaining proceeds will be used for general corporate purposes, including funding a portion of Endeavour's 2011 capital program.
Houston-based Endeavour is an oil and gas company focused on the exploration, acquisition and development of oil and gas concessions in the United States and United Kingdom.
| Issuer: | Endeavour International Corp.
|
| Issue: | Convertible senior notes
|
| Amount: | $120 million, upsized from $110 million
|
| Greenshoe: | $15 million
|
| Maturity: | July 15, 2016
|
| Bookrunners: | Citigroup Global Markets Inc., Morgan Stanley & Co. Inc.
|
| Coupon: | 5.5%
|
| Price: | Par
|
| Yield: | 5.5%
|
| Conversion premium: | 30%
|
| Conversion price: | $18.51
|
| Conversion ratio: | 54.019
|
| Price talk: | 5.25%, up 22.5%-27.5%, revised from 5.25%-5.75%, up 20%-25%
|
| Call feature: | Non-callable
|
| Put option: | No puts
|
| Takeover protection: | Yes
|
| Dividend protection: | Yes
|
| Pricing date: | July 18
|
| Settlement date: | July 22
|
| Distribution: | Rule 144A
|
| Stock symbol: | NYSE: END
|
| Stock price: | $14.24 at close July 18
|
| Market capitalization: | $528.75 million
|
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