New York, Jan. 25 – Oil States International, Inc. priced $200 million of five-year senior convertible notes after the market close on Thursday with a coupon of 1.5% and an initial conversion premium of 37.5%, according to a news release.
The deal came at the rich end of talk which had been set at 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.
Oil States is a Houston-based oilfield services company.
| Issuer: | Oil States International, Inc.
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| Issue: | Convertible senior notes
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| Amount: | $200 million
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| Maturity: | Feb. 15, 2023
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| Coupon: | 1.5%
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| Price: | Par
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| Yield: | 1.5%
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| Initial conversion premium: | 37.5%
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| Conversion price: | $44.89
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| Conversion rate: | 22.2748
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| Call: | From Feb. 15, 2021 at par subject to 130% hurdle
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| Net share settlement: | Cash, stock or a combination, at company’s option
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| Bookrunners: | Wells Fargo, Bank of America Merrill Lynch, J.P. Morgan and RBC
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| Pricing date: | Jan. 25
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| Settlement date: | Jan. 30
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| Distribution: | Rule 144A
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| Stock symbol: | NYSE: OIS
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| Stock price: | $32.65 at close on Jan. 25
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| Market capitalization: | $2.00 billion
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