Seacor greenshoe fully exercised, lifts convertibles to $350 million

By Devika Patel

Knoxville, Tenn., Dec. 11 - Underwriters for Seacor Holdings Inc.'s offering of 15-year 2.5% convertible notes exercised their over-allotment option in full for $50 million more of the convertibles, increasing the size of the issue to $350 million, the company said in an 8-K filed Tuesday with the Securities and Exchange Commission.

As previously reported, the company sold the convertibles after the close on Dec. 5 in a Rule 144A offering via bookrunner Goldman Sachs & Co.

The convertibles have an initial conversion premium of 30% and an initial conversion price of $115.10, which equals a conversion ratio of 8.6879.

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

Of the proceeds, $125 million will be used to repay borrowings under the company's revolving credit facility and $50 million will be used to buy back stock from the purchasers of the convertibles at $88.54, the stock's closing price on Dec. 5. Remaining proceeds will be used for general corporate purposes, including the possible further repurchase of common stock and payment of a dividend to stockholders.

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

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