By Stephanie N. Rotondo
Phoenix, July 13 - Cal Dive International Inc. priced $75 million of 5% convertible senior notes due July 15, 2017 with a 20% initial conversion premium, the company said in a press release Friday.
The bonds were sold with an initial conversion price of $2.24 per share, a 20% premium over Cal Dive's closing stock price of $1.87 on Thursday. The initial conversion rate is 445.6328 shares per $1,000 note.
The bonds are convertible into cash, common stock, or a combination at Cal Dive's option.
The offering was sold under Rule144A.
There is an $11.25 million overallotment option.
Proceeds will be used to repay part of the company's senior secured term loan.
Settlement is expected July 18.
Cal Dive is a Houston-based offshore oil and gas company.
| Issuer: | Cal Dive International Inc.
|
| Securities: | Convertible senior notes
|
| Amount: | $75 million
|
| Greenshoe: | $11.25 million
|
| Coupon: | 5%
|
| Maturity: | July 15, 2017
|
| Initial conversion premium: | 20%
|
| Initial conversion price: | $2.24
|
| Initial conversion rate: | 445.6328 shares
|
| Net share settlement: | Yes
|
| Contingent conversion: | Yes
|
| Pricing date: | July 13
|
| Settlement date: | July 18
|
| Stock symbol: | NYSE: DVR
|
| Market capitalization: | $181 million
|
| Stock price: | $1.87 at close on July 12
|
| Distribution: | Rule 144A
|
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