Cobalt agrees to exchange some 2.625% convertibles, 3.125% convertibles

By Susanna Moon

Chicago, Nov. 7 – Cobalt International Energy, Inc. agreed to exchange some of its outstanding 2.625% convertible senior notes due 2019 and 3.125% convertible senior notes due 2024 last Friday, according to an 8-K filing with the Securities and Exchange Commission.

The transaction consists of the issue and sale of $500 million of new first-lien senior secured notes to holders comprising an ad hoc group and the issue of second-lien senior secured notes and 30 million shares of common stock to noteholders of the ad hoc group in exchange for the group’s notes at a discount to the principal amount of notes being exchanged.

In September, the company began discussions with some holders of the 2019 notes and 2024 notes for a potential debt exchange, financing or other transaction involving the notes, the filing added.

Houston-based Cobalt is an oil exploration and development company.

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