Secunda prolongs annual reduction offer for floaters due 2012

By Jennifer Chiou

New York, Sept. 21 - Secunda International Ltd. said it pushed back the deadline on its annual reduction offer for up to $3.8 million of its $125 million of senior secured floating-rate notes due 2012 to 5 p.m. ET on Sept. 29 from Sept. 20.

The company previously prolonged its tender offer for the floaters to 5 p.m. ET on Oct. 3.

The annual reduction offer, announced Aug. 1, will apply to any notes not tendered in the company's ongoing tender offer and consent solicitation. It is required under the note indenture.

In the annual reduction offer, the company already reported it will pay the principal amount plus accrued interest up to the date of payment for the notes.

The tender expiration date, originally set for July 28, had already been extended to Aug. 11 and Sept. 12.

Secunda extended the tender offer to accommodate the schedule for the company's pending financing, which will fund the offer.

On or after Sept. 21, the early settlement date, the company may choose to purchase any notes already tendered.

As previously reported, all of the notes were tendered by the consent deadline on July 12.

The consents allow the company to amend the note indenture to eliminate substantially all of the restrictive covenants and certain events of default.

Following a price increase on July 28, the company will pay a fixed amount of $1,045.00, plus accrued interest, per $1,000 principal amount of notes. That price includes a $30.00 consent payment.

On July 14, the company had set the offer price at $1,043.58, including the $30.00 consent payment. That price was based on a tender offer yield of 5.658% - 50 basis points more than the comparable U.S. Treasury.

The tender began on June 26.

The offer is subject to some conditions, including the receipt of tenders from holders of a majority of the notes, a new credit facility or other financing that provides sufficient cash to fund the tender offer and consent solicitation and the successful pricing of the initial public offering of the company's common shares in Canada.

Banc of America Securities LLC is the dealer manager and solicitation agent for the ongoing tender offer (call High Yield Special Products collect at 212 847-5836 or 888 292-0070). D.F. King and Co., Inc. is the information agent for both offers (call collect 212 269-5550 or 800 758-5378).

Secunda is a Dartmouth, Nova Scotia, offshore oil services company.

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