Helix Energy to use junk bond market to extinguish 6.75% convertibles

Chicago, Nov. 15 – Helix Energy Solutions Group Inc. announced that it was raising cash in the junk bond market to pay the cost of extinguishing its obligations on its 6.75% convertible senior notes due 2026, according to a press release.

As previously reported, the 2026 notes became convertible on Oct. 1 as a result of the closing sale price of Helix’s common stock being more than the conversion trigger price in effect on each applicable trading day during at least 20 of the last 30 consecutive trading days of the calendar quarter ending Sept. 30.

The $200 million issue of convertibles priced on Aug. 12, 2020 against a stock price of $4.81. They became callable on Aug. 15, 2023 subject to a 130% hurdle. The company’s stock increased dramatically between mid-June and late September, trading at $6.75 per share in mid-June and peaking at $11.63 on Sept. 27.

The company went farther on Wednesday to say that it may use privately negotiated transactions to extinguish the notes. Payments will be made using the new offering, cash on hand or shares of the company’s common stock.

The issuer is a Houston-based offshore energy services company.

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