Cal Dive $240 million convertible talked at 2.875%-3.375%, up 41.5%-46.5%

By Ronda Fears

Nashville, March 22 - Cal Dive International Inc. launched $240 million of 20-year convertible notes after Tuesday's close with guidance for a 2.875% to 3.375% yield and 41.5% to 46.5% initial conversion premium.

Banc of America Securities LLC is bookrunner of the Rule 144A deal, which is slated to price after the close Wednesday. UBS Investment Bank is co-manager.

The senior notes will be non-callable for seven years, with puts in years seven, 10 and 15. There also is a 120% contingent conversion trigger and a 120% contingent payment trigger.

There is a $60 million greenshoe available.

The Houston-based deepwater drilling oilfield services company said proceeds would be used for general corporate purposes including a contribution to its 50/50 joint venture Deepwater Gateway LLC for early debt retirement, capital expenditures and potential acquisitions.

Cal Dive shares closed Tuesday up $1.05, or 2.17%, at $49.39, but in after-hours trading news of the deal sent the stock lower by $1.14, or 2.31%.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.