Oil States talks $200 million five-year convertibles to yield 1.5% to 2%, up 32.5% to 37.5%

By Abigail W. Adams

Portland, ME., Jan. 24 – Oil States International, Inc. plans to price $200 million in five-year senior convertible notes after the market close on Thursday with price talk for a coupon of 1.5% to 2% and an initial conversion premium of 32.5% to 37.5%.

Wells Fargo, Bank of America Merrill Lynch, J.P. Morgan, and RBC are joint bookrunners for the Rule 144A deal.

The notes are non-callable until Feb. 15, 2021, then callable subject to a 130% hurdle.

There are no put options, except upon a fundamental change. There is takeover and dividend protection.

Conversion will be settled in cash, shares or a combination of both at the company’s option.

Proceeds will be used to pay down debt under the company’s revolving credit facility. Funds from the credit facility were drawn to fund the acquisition of GEODynamics, Inc., which closed on Jan. 12, according to a company release.

Oil States is a Houston-based oilfield services company.

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