ATP Oil & Gas to price $125 million perpetual convertible preferreds at 7.75%-8.25%, up 15%-25%

By Rebecca Melvin

New York, Sept. 22 - ATP Oil & Gas Corp. plans to price $125 million of convertible perpetual preferred stock with a liquidation preference of $100 per share after the close of markets on Wednesday.

The Rule 144A offering was talked with a dividend of 7.75% to 8.25% and an initial conversion premium of 15% to 25%, according to market sources.

ATP also plans to price 5.3 million shares of common stock.

The preferred offering has a greenshoe of $18.75 million in additional preferred shares, and the common stock offering has a greenshoe of 795,000 in additional shares. Both offering are being sold via joint bookrunners Credit Suisse Securities and J.P. Morgan Securities Inc.

The preferred shares are non-callable for five years and provisionally callable thereafter at a stock price hurdle of 150%.

There is also standard dividend and takeover protection.

Proceeds are expected to be used to fund capital expenditures, primarily at its Telemark location in the deepwater Gulf of Mexico, to reduce debt and for general corporate purposes.

Houston-based ATP Oil & Gas is an offshore oil and gas development and production company with operations in the Gulf of Mexico and the North Sea.

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