By Abigail W. Adams
Portland, Me., Jan. 24 – Teekay Corp. priced an upsized $125 million in five-year convertible notes prior to the market open on Wednesday with a coupon of 5% and an initial conversion premium of 20%.
Pricing came at the middle of talk for a coupon of 4.75% to 5.25% and an initial conversion premium of 17.5% to 22.5%.
J.P. Morgan and Morgan Stanley are joint bookrunners for the Rule 144A deal, which carries an upsized greenshoe of $25 million.
The deal size was initially $100 million with a greenshoe of $15 million.
The pricing of the convertible notes was concurrent with the pricing of a common stock offering of 10 million shares at $9.75 per share.
Morgan Stanley, J.P. Morgan Securities LLC, BofA Merrill Lynch and UBS Securities LLC are joint bookrunners for the common stock offering, which carries a greenshoe of 1.5 million shares.
The five-year convertible notes are non-callable for three years, then callable subject to a 130% hurdle. The notes have no puts but do have takeover protection.
Proceeds will be used for the repayment of debt and for general corporate purposes.
Teekay is a Hamilton, Bermuda-based provider of marine services to the oil and gas industry.
| Issuer: | Teekay Corp.
|
| Issue: | Convertible senior notes
|
| Amount: | $125 million
|
| Greenshoe: | $25 million
|
| Maturity: | Jan. 15, 2023
|
| Coupon: | 5%
|
| Price: | Par
|
| Initial conversion premium: | 20%
|
| Conversion price: | $11.70
|
| Conversion rate: | 85.4701
|
| Call: | Non-callable for three years then subject to a 130% hurdle
|
| Bookrunners: | J.P. Morgan and Morgan Stanley
|
| Pricing date: | Jan. 24
|
| Settlement: | Jan. 26
|
| Distribution: | Rule 144A
|
| Stock symbol: | NYSE:TK
|
| Stock reference price: | $9.75 in concurrent stock offering
|
| Market capitalization: | $817.77 million
|
| Price talk: | Coupon of 4.75% to 5.25% and initial conversion premium of 17.5% to 22.5%
|
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