Vantage Drilling to convert 1%/12% step-up third-lien convertibles

By Wendy Van Sickle

Columbus, Ohio, Nov. 18 – Vantage Drilling International’s board of directors has directed the conversion of all $775.8 million of the company’s outstanding 1%/12% step-up senior secured third-lien convertible notes due 2030 into ordinary shares of the company, according to a news release.

The company expects to convert all of the convertible notes into 8,114,984 ordinary shares on Dec. 3, bringing its total of outstanding ordinary shares to 13,115,037.

The convertible notes were issued in 2016 and as of Monday, the conversion rate was 0.01046, or one ordinary share per $95.60 principal amount of the convertibles. No payment or adjustment will be made for any accrued interest on the convertibles in connection with the conversion.

Vantage Drilling also said that its board of directors declared a special cash dividend totaling $525 million, or $40.03 per share following the conversion, payable on Dec. 17, to shareholders of record as of the close of business on Dec. 10.

Houston-based Vantage is an offshore drilling company.

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