By Rebecca Melvin
New York, Sept. 27 - Subsea 7 SA priced an upsized $600 million of five-year convertible senior bonds after the market close Thursday at par to yield 1% with an initial conversion premium of 30%, according to a company news release.
The Regulation S offering was initially talked at a $500 million base size, with a $100 million upsize option.
Pricing came at the cheap end of talk, which was for a 0.5% to 1% yield and 30% to 35% premium.
There is a $100 million over-allotment option.
ABG Sundal Collier and BNP Paribas were acting as joint bookrunners.
The bonds are initially convertible at a price of $30.10, which was based on the volume weighted average price of the company's shares on the Oslo Bors between launch and pricing of NOK 132.84, and an exchange rate of USD:NOK 5.7379.
The bonds are non-callable for three years and 21 days from settlement, and then provisionally callable subject to shares being 130% of the principal amount of the bond for a specified period.
Proceeds will be used for general corporate purposes and to finance growth.
George Town, Cayman Islands-based Subsea 7 is an underwater engineering and construction contractor for the offshore energy industry.
| Issuer: | Subsea 7 SA
|
| Issue: | Convertible senior bonds
|
| Amount: | $600 million, upsized from $500 million
|
| Greenshoe: | $100 million
|
| Maturity: | Oct. 5, 2017
|
| Bookrunners: | ABG Sundal Collier, BNP Paribas
|
| Coupon: | 1%
|
| Price: | Par
|
| Yield: | 1%
|
| Initial conversion premium: | 30%
|
| Initial conversion price: | $30.10
|
| Calls: | Non-callable for three years and 21 days from settlement, then provisionally callable subject to a 130% price hurdle
|
| Price talk: | 0.5%-1%, up 30%-35%
|
| Distribution: | Regulation S
|
| Pricing date: | Sept. 27
|
| Settlement date: | Oct. 5
|
| Stock symbol: | Oslo: SUBC
|
| Stock reference price: | $23.15, based on the VWAP of shares between launch and pricing of NOK 132.84, and an exchange rate of USD:NOK 5.7379
|
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