Flotek talks $100 million convertible senior notes at 3.75% to 4.25%, up 35% to 40%

By Evan Weinberger

New York, Feb. 5 - Flotek Industries Inc. launched $100 million in convertible senior notes due Feb. 15, 2028 on Tuesday before market open. The coupon is talked at 3.75% to 4.25% and the initial conversion premium is talked at 35% to 40%.

The deal is expected to price Feb. 11.

Bear Stearns is the bookrunner on the Securities and Exchange Commission registered transaction.

There is a $15 million over-allotment option.

Flotek can call the convertibles beginning Feb. 15, 2013. They are puttable on Feb. 13 in each of 2013, 2018 and 2023.

There is a contingent interest payment subject to a 120% hurdle beginning Feb. 15, 2013.

At the same time, Flotek will also issue up to 3.8 million shares of common stock, which will be lent to an affiliate of Bear Stearns. Flotek will receive no cash from the sale of the common stock offering.

Flotek is a Houston-based oil and gas driller. The company plans to u se the proceeds to purchase wireless survey and measurement tools maker Teledrift Inc. That deal was announced Tuesday.

© 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.