By Rebecca Melvin
New York, July 11 - Vantage Drilling Co. priced an upsized $85 million of 30-year convertible senior notes ahead of the market open Thursday at par to yield 5.5%, with an initial conversion premium of 22.5%, according to a syndicate source.
The Rule 144A deal was initially going to be $75 million in size. Pricing came at the midpoint of 5.25% to 5.75% coupon talk and at the cheap end of 22.5% to 25% talk for the premium.
There is a $15 million greenshoe for the deal that was sold on an overnight basis by Jefferies & Co.
The notes are non-callable for three years until July 15, 2016, and then they are provisionally callable for two years if shares rise to at least 150% of the conversion price. They are freely callable on or after July 15, 2018. They have investor puts in years three and five at par.
The notes 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 proceeds will be used to fund the initial payment of $59.5 million under a construction contract for the Cobalt Explorer drillship with the remainder for general corporate purposes.
Houston-based Vantage is an offshore drilling company.
| Issuer: | Vantage Drilling Co.
|
| Issue: | Convertible senior notes
|
| Amount: | $85 million, upsized from $75 million
|
| Greenshoe: | $15 million
|
| Maturity: | July 15, 2043
|
| Bookrunner: | Jefferies & Co.
|
| Coupon: | 5.5%
|
| Price: | Par of $1,000
|
| Yield: | 5.5%
|
| Conversion premium: | 22.5%
|
| Conversion price: $2.39
|
| Conversion ratio: | 418.6289
|
| Call option: | Non-callable until July 15, 2016, then provisionally callable for two years at 150% price hurdle, freely callable on or after July 15, 2018
|
| Put option: | On July 15, 2015 and July 15, 2018
|
| Contingent conversion: | Yes, at 130%
|
| Conversion make-whole: | Prior to July 15, 2016, investors will receive 1.75 years' worth of coupon payments
|
| Dividend protection: | Yes
|
| Takeover protection: | Yes
|
| Price talk: | 5.25%-5.75%, up 22.5%-25%
|
| Pricing date: | July 11
|
| Settlement date: | July 16
|
| Stock symbol: | NYSE: VTG
|
| Stock reference price: | $1.95 at close July 10
|
| Distribution: | Rule 144A
|
| Market capitalization: | $551.3 million
|
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