By Abigail W. Adams
Portland, Me., April 16 – Electromagnetic Geoservices ASA priced $32.5 million in five-year convertible bonds at par of $100 to yield Libor plus 550 bps and an initial conversion premium of 35%.
The bonds are being marketed to shareholders that own a minimum of 28,132 shares in the company, which is equivalent to a minimum investment of $10,000, according to a company news release.
The convertible bond offering was issued alongside a $12.5 million rights issue, of which $10 million is underwritten.
The rights issue will be for a minimum of 31,632,654 and a maximum of 39,540,816 new shares at a subscription price of NOK 2.45.
The subscription price represents a discount of 10% from the average share closing price of NOK 2.842.
The conversion price for the convertible bonds is $0.42677, or NOK 3.3075, which represents a 35% initial conversion premium from the rights issue.
Electromagnetic Geoservices called for an extraordinary meeting on March 23 for approval to issue the convertible bonds to refinance the company’s current bond issue, which matures in 2019.
The comprehensive refinancing proposal was approved, according to a company news release.
Proceeds from the rights issue will be used for general corporate purposes.
Electromagnetic Geoservices is a Trondheim, Norway-based marine electromagnetic company that uses proprietary electromagnetic technology to support oil and gas companies in their offshore search for hydrocarbons.
| Issuer: | Electromagnetic Geoservices ASA
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| Securities: | Convertible bonds
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| Amount: | $32.5 million
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| Maturity: | Five-years
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| Coupon: | Libor plus 550 bps
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| Price: | Par of $100
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| Conversion premium: | 35%
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| Conversion price: | $0.42677 or NOK 3.3075
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| Concurrent offering | $12.5 million rights issue for a minimum of 31,632,654 and maximum of 39,540,816 new shares at NOK 2.45
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| Pricing date: | April 16
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| Stock symbol: | NO: EMGS
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| Stock price: | NOK 2.9 at market close April 13
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| Market capitalization: | NOK 246.86 million
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