By Susanna Moon
Chicago, May 7 – Electromagnetic Geoservices ASA said it will issue $32.5 million of convertible bonds as part of a comprehensive refinancing announced April 16.
As announced, Electromagnetic priced $32.5 million of five-year convertible bonds at par of $100 to yield Libor plus 550 bps and an initial conversion premium of 35%.
Holders had subscribed for a total of $22,224,000 bonds, and the remaining $10,276,000 have been allocated to the underwriters, according to a company update on Monday.
The company’s stock (Oslo: EMGS) closed at NOK 2.88 on Friday.
Based on the respective underwriting obligations, 49,060 bonds were allocated to Siem Investments Inc. and 53,700 bonds were allocated to Perestroika AS.
The convertible bond offering was issued alongside a $12.5 million rights issue, of which $10 million is underwritten.
For the rights issue, the subscription period ended at 6 a.m. ET on Friday.
Under the rights issue, the company will issue a maximum of 39,540,816 new shares, each at a subscription price of NOK 2.45, with settlement on May 9.
The rights issue was substantially oversubscribed, with more than 48 million new shares being subscribed for.
The company said on April 20 that it issued a call for its floating-rate senior callable bond issue 2013/2016.
Electromagnetic Geoservices called for an extraordinary meeting on March 23 for approval to issue the convertible bonds to refinance the company’s current bond issue, which matures in 2019.
The comprehensive refinancing proposal was approved.
Electromagnetic is a Trondheim, Norway-based company that provides proprietary electromagnetic technology to support oil and gas companies in their search for offshore hydrocarbons.
| Issuer: | Electromagnetic Geoservices ASA
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| Issue: | Convertible bonds
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| Amount: | $32.5 million
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| Maturity: | Five years
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| Coupon: | Libor plus 550 bps
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| Price: | Par of $100
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| Conversion premium: | 35%
|
| Stock ticker: | Oslo: EMGS
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| Stock price: | NOK 2.88 at market close May 4
|
| Settlement date: | May 9
|
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