Seacor plans to sell $250 million 15-year convertibles to yield 2.5%-3%, up 27.5%-32.5%

By Rebecca Melvin

New York, Dec. 4 - Seacor Holdings Inc. launched an offering for $250 million of 15-year convertible bonds after the market close on Tuesday that were seen pricing late Wednesday and were talked to yield 2.5% to 3% with an initial conversion premium of 27.5% to 32.5%, according to a syndicate source.

The Rule 144A offering has a greenshoe of $50 million and was being sold via bookrunner Goldman Sachs & Co.

The bonds are non-callable for three years, then provisionally callable at a 130% price hurdle for two years, before becoming freely callable. There are puts in years five and 10.

Proceeds will be used primarily to repay amounts outstanding under the company's revolving credit facility. Remaining proceeds will be used for general corporate purposes, including the possible repurchase of common stock and payment of a dividend to stockholders.

Shares repurchased with proceeds from the offering may be purchased from buyers of the convertible notes and in open transactions.

Seacor is a Fort Lauderdale, Fla., provider of marine support and transportation services.

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