By Rebecca Melvin
New York, May 26 – Siem Industries Inc. priced €250 million of five-year bonds exchangeable for shares of Subsea 7 SA at par to yield 2.25% and an initial exchange premium of 27.5%, according to a news release.
The Regulation S issue included a €200 million base deal and the majority of a €75 million increase option.
The deal priced at the cheap end of price talk for a 1.5% to 2.25% coupon and a 27.5% to 32.5% exchange premium over Subsea’s common shares on the Oslo Stock Exchange during marketing.
Concurrently with the pricing of the new notes, Siem Industries repurchased about 43% of its existing 1% bonds, exchangeable for common shares of Subsea 7 due 2019 for $199,000 per $200,000 principal amount per bond, or 99.5% of their principal amount, which was the high end of the targeted range of 99% to 99.5% principal amount plus $449.32 for accrued interest.
The new bonds will be converted at a currency exchange spot rate of NOK 9.2449 per €1.00.
ABG Sundal Collier ASA and BNP Paribas were bookrunners for the deals.
Proceeds of the new bonds are being used to repurchase the 2019 bonds and to reimburse the remaining 2019 bonds at maturity and for general corporate purposes.
The new bonds are non-callable except for a clean up call.
Application is being made to list the securities.
Based in the Cayman Islands, Siem Industries is a diversified industrial holding company with interests in oil and gas and renewable energy and shipping, mining and finance.
| Issuer: | Siem Industries Inc.
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| Issue: | Exchangeable bonds
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| Exchange entity: | Subsea 7 SA
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| Amount: | €250 million, including two-thirds of €75 million increase option
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| Maturity: | June 2, 2021
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| Bookrunners: | ABG Sundal Collier ASA and BNP Paribas
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| Coupon: | 2.25%
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| Price: | Par
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| Yield: | 2.25%
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| Initial exchange price: | €10.2995
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| Initial conversion premium: | 27.5%
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| Price talk: | 1.5%-2.25%, up 27.5%-32.5%
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| Calls: | Non-callable, except for a clean up call
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| Dividend protection: | Yes
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| Takeover protection: | Yes
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| Share reference price: | €8.0780, VWAP during marketing May 26
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| Pricing date: | May 26
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| Settlement date: | June 2
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| Distribution: | Regulation S
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