Pride calls its $300 million 3.25% convertibles

By Susanna Moon

Chicago, April 8 - Pride International, Inc. said it will redeem all $300 million outstanding principal amount of its 3.25% convertible senior notes due 2033.

Pride said it will pay par plus accrued interest for the notes on May 16, the redemption date.

The notes may be converted at any time before the close of business on May 15. The notes are convertible at a rate of 38.9045 shares of common stock per $1,000 principal amount of notes. The company may elect to pay cash in lieu of shares upon conversion.

"The long-term viability of the offshore business cycle continues to offer opportunities to execute our stated strategy of building critical mass in the ultra-deepwater sector, while exercising strong financial discipline," Louis A. Raspino, president and chief executive officer of Pride, said in a written statement. "Our decision to redeem the 3.25% convertible notes is another example of this discipline."

"Our repayment of the outstanding principal amount of the debt in cash upon conversion rather than settling through the issuance of shares essentially has the same effect as a $300 million share repurchase, representing approximately 5% of our fully diluted shares, thereby allowing us to achieve a balance between long and short-term growth objectives while also driving down our cost of capital," Raspino said.

Pride is a Houston-based offshore drilling contractor.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.