By Kenneth Lim
Boston, Sept. 11 - Acergy SA on Monday priced $500 million of seven-year convertible senior notes within talk, at a coupon of 2.25% and an initial conversion premium of 43%.
The notes were offered at par of $100,000 apiece and talked at a coupon of 2% to 2.5% and an initial conversion premium of 40% to 45%. The notes may be converted into Acergy's Oslo-listed common stock at an initial conversion price of $24.05, or an initial conversion rate of 4,158.0042 shares per note. Acergy's volume-weighted share price on Monday was NOK 109.815.
The total amount includes a $65 million over-allotment option, which was already exercised.
Lehman Brothers and UBS Investment Bank were the bookrunners of the deal, which was sold under Regulation S.
The convertibles are non-callable before Oct. 25, 2010, or four years and 14 days after being issued. After that, they may be called subject to a 130% price hurdle.
There is no put option except in a change of control of Acergy.
The notes have dividend and takeover protection.
There is a cross-default threshold of $10 million.
Acergy, which is based in Sunbury-on-Thames, U.K., provides seabed-to-surface engineering and construction contractor services for the oil and gas industry and will use the proceeds of the deal to upgrade and rejuvenate its fleet. It may also use up to $300 million to buy back up to 10% of its issued share capital.
| Issuer: | Acergy SA
|
| Issue: | Convertible senior notes
|
| Bookrunners: | Lehman Brothers and UBS Investment Bank
|
| Amount: | $500 million, including greenshoe
|
| Greenshoe: | $65 million, already exercised
|
| Maturity: | Oct. 11, 2013
|
| Coupon: | 2.25%
|
| Price: | Par of $100,000
|
| Yield: | 2.25%
|
| Conversion premium: | 43%
|
| Conversion price: | $24.05
|
| Conversion ratio: | 4,158.0042
|
| Dividend protection: | Yes
|
| Takeover protection: | Yes
|
| Call protection: | Non-callable until Oct. 25, 2010, after which callable subject to 130% hurdle
|
| Puts: | None
|
| Price talk: | 2%-2.5%, up 40%-45%
|
| Pricing date: | Sept. 11 after the close
|
| Settlement date: | Oct. 11
|
| Distribution: | Regulation S
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
