By Rebecca Melvin
New York, May 1 – Sequa Petroleum NV closed on its $300 million offering of 5% five-year convertible bonds with an initial conversion premium of 25% over shares on the day of pricing, according to a news release.
The initial conversion price is $3.50. The Regulation S offering priced April 24 when shares were $2.80.
Repayment of an existing shareholder loan, drawn down by about $126 million, will be settled by issuing the bonds in exchange for the loan. Remaining bonds will be offered to third-party investors.
In addition, $95.6 million of bonds were issued and are being held for prospective sales to third party purchasers outside the United States.
After six weeks, the unsold bonds will be canceled and holders will be notified of the final issue size.
Anoa Capital SA and ADS Securities LLC, Abu Dhabi, were joint bookrunners.
About $75 million of proceeds were paid to Sequa Petroleum NV at closing. Proceeds are earmarked to finance its acquisition activities and for other general financing and corporate purposes.
The bond issue is expected to be listed on the Cayman Islands stock exchange.
Sapinda Asia Ltd., an existing shareholder, has entered into a commitment to subscribe for up to $62.5 million of additional ordinary shares in Sequa during 2015.
Sequa is an oil and gas reserves developer, based in London and is a subsidiary of Sapinda Holdings BV, an investment holding company based in the Netherlands.
| Issuer: | Sequa Petroleum NV
|
| Issue: | Convertible senior notes
|
| Amount: | $300 million
|
| Maturity: | April 2020
|
| Bookrunners: | Anoa Capital SA and ADS Securities LLC, Abu Dhabi
|
| Coupon: | 5%
|
| Price: | Par
|
| Yield: | 5%
|
| Conversion premium: | 25%
|
| Conversion price: | $3.50
|
| Pricing date: | April 24
|
| Closing date: | May 1
|
| Distribution: | Regulation S
|
| Stock symbol: | Paris: MLSEQ
|
| Stock reference price: | $2.80, as of close April 24
|
| Market capitalization: | €560 million
|
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