By Stephanie N. Rotondo
Phoenix, Aug. 14 - Vantage Drilling Co. priced $56.5 million 7.875% senior convertible notes due Sept. 1, 2042, according to an FWP filed with the Securities and Exchange Commission on Tuesday.
Of the funds raised, $50 million will be raised via an underwritten public offering. The remaining $6.5 million was directly placed with F3 Capital.
Interest on the notes will be payable on the first day of March and September, beginning March 1, 2013.
The initial conversion rate is 476.1905 common shares per each $1,000 of notes. The initial conversion price is $2.10, a 23.5% premium over the closing share price of $1.70 on Aug. 13.
The company has the option to redeem the convertible bonds on or after Sept 1, 2015 and before Sept. 1, 2017 if the volume weighted average of the common stock is greater or equal to 125% of the conversion price for 20 trading days within a 30-day period.
Additionally, the notes can be redeemed at any point after Sept. 1, 2017.
The notes will be mandatorily converted on or before Sept. 1, 2015 if the common stock's volume weighted average price is 150% or greater for 20 days during a 30-day period.
Settlement is expected Aug. 21.
Lazard Capital Markets LLC was the underwriter.
Proceeds will be used for capital expenditures, working capital and general corporate purposes.
Vantage Drilling is a Houston-based offshore drilling company.
| Issuer: | Vantage Drilling Co.
|
| Securities: | Senior convertible notes
|
| Amount: | $56.5 million
|
| Maturity: | Sept. 1, 2042
|
| Underwriter: | Lazard Capital Markets LLC
|
| Coupon: | 7.875%
|
| Price: | Par
|
| Yield: | 7.875%
|
| Conversion premium: | 23.5%
|
| Conversion price: | $2.10 per share
|
| Conversion ratio: | 476.1905 per $1,000 of notes
|
| Call options: | Between Sept. 1, 2015 and 2017, if VWAP of the common is 125% or greater for 20 days out of a 30-day period; at any time after Sept. 1, 2017
|
| Mandatory conversion: | On or before Sept. 1, 2015 if VWAP is 150% or higher for 20 days in a 30-day period
|
| Distribution: | SEC registered
|
| Pricing date: | Aug. 14
|
| Settlement date: | Aug. 21
|
| Stock symbol: | NYSE: VTG
|
| Stock price: | $1.70 at close Aug. 13
|
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