Global Industries: 2.75% notes now putable or convertible into cash

By Angela McDaniels

Tacoma, Wash., Dec. 1 - Global Industries, Ltd. became a wholly owned subsidiary of Technip SA on Dec. 1. As a result, the company's 2.75% senior convertible debentures due 2027 are only convertible into cash, and the holders have a change-of-control put option.

The debentures may now only be converted into the payment that the holders would have received in the merger had they converted their debentures prior to the merger's close, according to an 8-K filing with the Securities and Exchange Commission.

The conversion ratio is 28.1821 shares, and the amount paid in the merger was $8.00 per share. Holders who convert will therefore receive $225.46 per $1,000 principal amount of debentures.

Alternatively, holders can require Global Industries to repurchase their convertibles at a cash price equal to par plus accrued interest.

Global Industries is a Carlyss, La.-based provider of construction and subsea services to the offshore oil and gas industry. Technip provides project management, engineering and construction services to the energy industry and is based in Paris.

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