By Abigail W. Adams
Portland, Me., Aug. 12 – Helix Energy Solutions Group Inc. priced an upsized $200 million 6.75% convertible notes due Feb. 15, 2026 prior to the market open on Wednesday at par with an initial conversion premium of 45%, according to an FWP filing with the Securities and Exchange Commission.
Pricing came in line with talk for a fixed coupon of 6.75% and a fixed initial conversion premium of 45%, according to a market source.
Wells Fargo Securities LLC and Evercore ISI are joint bookunners for the registered offering.
The notes are contingently convertible until Nov. 17, 2025.
They are non-callable until Aug. 15, 2023 and then subject to a 130% hurdle.
The notes are putable upon a fundamental change.
In connection with the pricing of the notes, the company entered into capped call transactions with a cap price of $8.4175, which represents a premium of 75% over the last reported sales price of stock.
The company will use $183 million of net proceeds to repurchase $90 million of the principal amount of the 4.25% convertible notes due 2022 and $95 million of the principal amount of the 4.125% convertible notes due 2023 in privately negotiated transactions.
Net proceeds are expected to be $192.5 million.
Approximately $10.5 million of the net proceeds will be used to cover the cost of the call spread with the remaining amount to be used to fund the repurchases of the 2022 and 2023 convertible notes.
Helix is a Houston-based offshore energy services company.
| Issuer: | Helix Energy Solutions Group Inc.
|
| Securities: | Convertible senior notes
|
| Amount: | $200 million
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| Maturity: | Feb. 15, 2026
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| Bookrunners: | Wells Fargo Securities LLC and Evercore ISI
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| Coupon: | 6.75%
|
| Price: | Par
|
| Yield: | 6.75%
|
| Conversion premium: | 45%
|
| Conversion price: | $6.97
|
| Conversion rate: | 143.3795
|
| Call options: | Non-callable until Aug. 15, 2023 and then subject to a 130% hurdle
|
| Put options: | Upon a fundamental change
|
| Pricing date: | Aug. 12
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| Settlement date: | Aug. 14
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| Distribution: | Registered
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| Talk: | Fixed coupon of 6.75%, fixed initial conversion premium of 45%
|
| Stock symbol: | NYSE: HLX
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| Stock price: | $4.81 at market close Aug. 11
|
| Market capitalization: | $673 million
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