By Abigail W. Adams
Portland, Me., March 17 – Oil States International Inc. priced $135 million of five-year convertible notes after the market close on Tuesday at par with a coupon of 4.75% and an initial conversion premium of 25%, according to a company news release.
Pricing came at the cheap end of talk for a coupon of 4.25% to 4.75% and an initial conversion premium of 25% to 30%, according to a market source.
Wells Fargo Securities LLC, Raymond James & Associates, BofA Securities Inc. and RBC Capital Markets LLC were bookrunners for the Rule 144A offering, which carries a greenshoe of $15 million.
The notes will be settled in cash, shares or a combination of both at the company’s option.
The notes are non-callable until April 6, 2024 and then subject to a 130% hurdle.
Concurrently with the new offering, the company repurchased $125 million of its 1.5% convertible notes due 2023 for $120 million in cash in privately negotiated transactions.
Proceeds will be used to fund the repurchase of the 1.5% convertible notes and for general corporate purposes, which may include additional repurchases of the 1.5% notes or the repayment of borrowings under the company’s revolving credit facility.
Oil States is a Houston-based service provider to oil and gas companies.
| Issuer: | Oil States International Inc.
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| Securities: | Convertible senior notes
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| Amount: | $135 million
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| Greenshoe: | $15 million
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| Maturity: | April 1, 2026
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| Bookrunners: | Wells Fargo Securities LLC, Raymond James & Associates, BofA Securities Inc. and RBC Capital Markets LLC
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| Coupon: | 4.75%
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| Price: | Par
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| Yield: | 4.75%
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| Conversion premium: | 25%
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| Conversion price: | $10.49
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| Conversion rate: | 95.3516
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| Call options: | Non-callable until April 6, 2024 and then subject to a 130% hurdle
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| Pricing date: | March 16
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| Settlement date: | March 19
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| Distribution: | Rule 144A
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| Talk: | Coupon of 4.25% to 4.75% and initial conversion premium of 25% to 30%
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| Stock symbol: | NYSE: OIS
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| Stock price: | $8.39 at market close March 16
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| Market capitalization: | $512.15 million
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