Helix Energy offers convertible notes due 2022; proceeds for private redemptions of 3.25% notes

By Stephanie N. Rotondo

Seattle, Oct. 26 – Helix Energy Solutions Group, Inc. plans to price an offering of convertible senior notes due May 1, 2022, the company said in a prospectus filed with the Securities and Exchange Commission on Wednesday.

Raymond James & Associates Inc. is the bookrunner.

The notes are convertible prior to Feb. 1, 2022 only in certain circumstances, including if the stock hits a 130% price hurdle for any 20 days during a 30-day period, or if the notes trade at less than 97% of the conversion value for five consecutive trading days.

The notes are also convertible upon a fundamental change. In that instance, the conversion rate may increase.

After Feb. 1, 2022, the notes are convertible at any time.

On or after Nov. 1, 2019, the company may redeem the notes in the event of a conversion price trigger at par plus accrued interest. Additionally, holders can force a redemption upon a fundamental change.

The Houston-based offshore energy company plans to use proceeds to retire the existing 3.25% convertible senior notes due 2032 through privately negotiated transactions and for general corporate purposes. That may include the repayment of other outstanding debt.

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