Songa Offshore to price up to $125 million three-year convertibles at 2.75%-3.25%, up 35%-40%

By Angela McDaniels

Seattle, May 23 - Songa Offshore ASA said it plans to offer up to $125 million of convertible bonds due June 1, 2010.

The coupon is expected to be between 2.75% and 3.25%, according to a company news release.

The bonds will be convertible into Songa's ordinary shares and will have a conversion premium of 35% to 40% based on the volume-weighted average price of the company's stock on the Oslo Stock Exchange from Wednesday until pricing.

ABG Sundal Collier is bookrunner for the deal, which is expected to settle on June 1.

The Oslo-based offshore drilling company said the convertibles are being offering in connection with its refinancing, under which four banks have approved a $650 million credit facility.

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