Secunda sets pricing in tenders for floating-rate notes

New York, July 14 - Secunda International Ltd. announced pricing in its tender offer for its $125 million of senior secured floating-rate notes due 2012.

For each $1,000 principal amount of notes, the company will pay $1,048.64, including the consent payment of $30.00 per $1,000 principal amount. The price is based on a tender offer yield of 5.658% - 50 basis points more than the comparable U.S. Treasury - and the 13.50688% interest rate for the next interest period.

Secunda said on July 12 that it has received tenders for all $125 million of the notes.

The Dartmouth, Nova Scotia, offshore oil services company obtained enough consents to amend the note indenture to eliminate substantially all of the restrictive covenants and certain events of default.

The company said it plans to execute a supplemental indenture.

As previously announced, for each $1,000 principal amount of notes, Secunda will pay an amount based on a fixed spread of 50 basis points over the yield on the price determination date of the 2.375% U.S. Treasury note due Aug. 31, 2006.

The total includes a consent payment of $30.00 per $1,000 that will only be paid to those that tender by the consent deadline.

Pricing was fixed at 2 p.m. ET on July 14.

The tender ends at 5 p.m. ET on July 28 unless extended. It began on June 26.

The offer is subject to conditions, including the receipt of tenders from holders of a majority of the notes, Secunda entering into a new credit facility or other financing that provides sufficient cash to fund the tender offer and consent solicitation and the successful pricing of the initial public offering of the company's common shares in Canada.

Banc of America Securities LLC is the dealer manager and solicitation agent (call High Yield Special Products collect at 212 847-5836 or 888 292-0070). D.F. King and Co., Inc. is the information agent (call collect 212 269-5550 or 800 758-5378).

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