By Rebecca Melvin
New York, March 18 - Salamander Energy plc launched and priced $100 million of five-year convertible bonds on Thursday at par to yield 5% with an initial conversion premium of 37.5%, according to a news release.
The total includes a $15 million greenshoe, which was exercised at pricing.
Pricing came toward the rich end of talk for the coupon, which was 4.75% to 5.75%, and at the rich end of talk for the premium, which was 32.5% to 37.5%.
Goldman Sachs International was the bookrunner, while EQL Capital and Oriel Securities were joint lead managers for the Regulation S offering.
The initial conversion price is £3.637 per share.
Proceeds will be used to afford opportunities for Salamander to broaden and diversify its Asian portfolio. As a first step, the group announced Thursday an agreement to acquire a 50% interest in and operatorship of Block 101-100/04, Offshore Northern Vietnam.
The bonds are non-callable until April 20, 2013 and then are provisionally callable at a price hurdle of 130%. Holders can put the bonds in the event of a change of control, and there is dividend protection.
Settlement and delivery of the bonds is expected to take place by March 30.
Application will be made to list the bonds on the official list of the U.K. Listing Authority and admit the bonds for trading on the London Stock Exchange's Professional Securities Market.
London-based Salamander is an independent oil and gas exploration, development and production company with assets in Asia.
| Issuer: | Salamander Energy plc
|
| Issue: | Convertible bonds
|
| Amount: | $100 million
|
| Maturity: | March 30, 2015
|
| Bookrunner: | Goldman Sachs International
|
| Joint lead managers: | EQL Capital, Oriel Securities
|
| Coupon: | 5%
|
| Price: | Par of $100,000
|
| Yield: | 5%
|
| Conversion premium: | 37.5%
|
| Conversion price: | £3.637
|
| Price talk: | 4.75%-5.75%, up 32.5%-37.5%
|
| Calls: | Non-callable until April 20, 2013, then provisionally callable at 130%
|
| Takeover protection: | Yes
|
| Dividend protection: | Yes
|
| Pricing date: | March 18
|
| Settlement date: | By March 30
|
| Distribution: | Reg. S
|
| Stock symbol: | London: SMDR
|
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