Vantage Drilling plans $75 million 30-year convertibles to yield 5.25%-5.75%, up 22.5%-25%

By Rebecca Melvin

New York, July 10 - Vantage Drilling Co. planned to price an overnight offering of $75 million of 30-year convertible senior notes at par to yield 5.25% to 5.75% with an initial conversion premium of 22.5% to 25%, according to market sources.

The Rule 144A offering has a $15 million greenshoe and was being sold via Jefferies & Co., with pricing seen before the market open Thursday.

The notes are non-callable for three years and then provisionally callable for two years if shares rise to at least 150% of the conversion price. They are freely callable thereafter. They have investor puts in years three and five at par.

The securities also have takeover and dividend protection and net share settlement.

Upon conversion prior to July 15, 2016, investors will receive 1.75-years' worth of coupon payments.

A portion of the proceeds will be used to fund the initial payment of $59.5 million under the construction contract for the Cobalt Explorer drillship with the remainder for general corporate purposes.

Houston-based Vantage is an offshore drilling company.

© 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.