By Evan Weinberger
New York, July 24 - Global Industries Ltd. priced $325 million in senior convertible debentures due Aug. 1, 2027 with a 2.75% coupon and a 32.5% initial conversion premium after the close Monday.
The deal came at the cheap end of talk, which put the coupon at 2.25% to 2.75% and the initial conversion premium at 32.5% to 37.5%
The conversion ratio is 28.1821.
Lehman Brothers is the bookrunner of the Rule 144A transaction. There is a $50 million over-allotment option.
The debentures are callable at any time beginning Aug. 1, 2014. There are put options on Aug. 1, 2017 and 2022 or upon a fundamental change in the company.
Global Industries is a Carlyss, La.-based offshore oil and gas exploration and drilling services provider. The company plans to use up to $75 million of the proceeds to repurchase shares of common stock. The remainder will go toward general corporate purposes, including upgrading existing vessels and new vessel acquisition and construction.
Issuer: Global Industries Ltd.
Issue: Senior convertible debentures
Amount: $325 million
Greenshoe: $50 million
| Maturity date: | Aug. 1, 2027
|
| Coupon: | 2.75%
|
| Price: | Par
|
| Yield: | 2.75%
|
| Conversion ratio: | 28.1821
|
| Conversion premium: | 32.5%
|
| Call: | Any time beginning Aug. 1, 2014
|
| Put: | Aug. 1, 2017 and 2022
|
| Bookrunner: | Lehman Brothers
|
| Distribution: | Rule 144A
|
| Talk: | 2.25%-2.75% coupon; 32.5%-37.5% initial conversion premium
|
| Pricing date: | July 23, after close
|
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