By Angela McDaniels
Seattle, May 24 - Songa Offshore ASA priced a $125 million offering of three-year convertible bonds on Thursday to yield 3.25% with an initial conversion premium of 35%.
Talk put the coupon at between 2.75% and 3.25% and the conversion premium at 35% to 40%.
ABG Sundal Collier was bookrunner for the private placement, according to a company news release.
The conversion price is $13.37, which was determined based on the volume-weighted average price of the company's stock on the Oslo Stock Exchange on Wednesday and Thursday, which was NOK 59.6348, and using an exchange rate of 6.02 Norwegian kroner per dollar and the 35% conversion premium.
The Oslo-based offshore drilling company said the convertibles are being offered in connection with its refinancing, under which four banks have approved a $650 million credit facility.
| Issuer: | Songa Offshore ASA
|
| Issue: | Convertible bonds
|
| Bookrunner: | ABG Sundal Collier
|
| Amount: | $125 million
|
| Maturity: | June 1, 2010
|
| Coupon: | 3.25%
|
| Price: | Par
|
| Yield: | 3.25%
|
| Conversion premium: | 35%
|
| Conversion price: | $13.37
|
| Conversion ratio: | 74.79432
|
| Pricing date: | May 24
|
| Settlement date: | June 1
|
| Guidance: | 2.75% to 3.25% yield, up 35% to 40%
|
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