By Rebecca Melvin
New York, July 18 - Underwriters for Cal Dive International Inc.'s new five-year convertible senior notes exercised the $11.25 million over-allotment option in full, lifting the size of the deal to $86.25 million, according to a term sheet.
As previously reported, the notes due July 15, 2017 were priced on July 12 at par to yield 5% with an initial conversion premium of 20%.
The Rule 144A deal was sold via joint bookrunners Wells Fargo Securities LLC and Merrill Lynch, Pierce, Fenner & Smith Inc., with co-managers Nataxis Securities Americas LLC, Howard Weil Inc., Capital One Southcoast Inc., and Banco Bilbao Vizcaya Argentaria SA.
As previously reported, the bonds priced with an initial conversion price of $2.24 per share, versus the July 12 closing stock price of $1.87.
The notes are convertible prior to April 15, 2017 under certain conditions, and are convertible into cash, common stock, or a combination at Cal Dive's option. They have takeover protection in the form of a make whole table.
Proceeds will be used to repay part of the company's senior secured term loan.
Cal Dive is a Houston-based offshore oil and gas company.
Issuer: | Cal Dive International Inc.
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Securities: | Convertible senior notes
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Amount: | $75 million
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Greenshoe: | $11.25 million
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Maturity: | July 15, 2017
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Bookrunners: | Wells Fargo Securities LLC and Merrill Lynch, Pierce, Fenner & Smith Inc.
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Co-managers: | Nataxis Securities Americas LLC, Howard Weil Inc., Capital One Southcoast Inc., and Banco Bilbao Vizcaya Argentaria SA.
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Coupon: | 5%
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Price: | Par
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Yield: | 5%
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Initial conversion premium: | 20%
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Initial conversion price: | $2.24
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Initial conversion rate: | 445.6328 shares
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Contingent conversion: | Yes
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Takeover protection: | Yes
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Net share settlement: | Yes
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Pricing date: | July 12
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Settlement date: | July 18
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Distribution: | Rule 144A
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Stock symbol: | NYSE: DVR
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Stock price: | $1.87 at close on July 12
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Market capitalization: | $181 million
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