Pride International holders convert most 3.25% convertibles ahead of redemption

By Angela McDaniels

Tacoma, Wash., May 20 - Pride International, Inc. said that holders of $299.7 million of its $300 million 3.25% convertible senior notes due 2033 converted their notes prior to May 16, the redemption date.

The remaining $254,000 of notes were redeemed for par plus accrued interest, according to an 8-K filing with the Securities and Exchange Commission.

The company called the notes on April 8. Holders could convert each note into 38.9045 shares of common stock at any time before the close of business on May 15.

Pride said it may choose to deliver cash in lieu of shares for some converted notes. Holders of these notes will receive a cash amount equal to the conversion rate multiplied by the "applicable stock price," which is equal to the average of the closing share prices of Pride over the five-trading-day period starting on the third trading day following the conversion date.

Pride is a Houston-based offshore drilling contractor.

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