Cobalt International plans $1.2 billion of seven-year convertibles to yield 2.625%, up 30%

By Rebecca Melvin

New York, Dec. 11 - Cobalt International Energy Inc. planned to price $1.2 billion of seven-year convertible senior notes that will be priced early Wednesday and were talked to yield 2.625% with an initial conversion premium of 30%, according to a syndicate source.

The registered, off-the-shelf deal has a $180 million greenshoe and was being sold via bookrunners Morgan Stanley & Co. LLC and Goldman Sachs & Co.

The notes are non-callable for life.

Proceeds from the offering will be used to fund Cobalt's capital expenditures and for general corporate purposes.

Houston-based Cobalt is an independent oil-focused exploration and development company focused on deepwater U.S. Gulf of Mexico and offshore Angola and Gabon in West Africa.

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