By Abigail W. Adams
Portland, Me., Sept. 26 – SAExploration Holdings, Inc. priced $60 million 6% five-year convertible notes on Wednesday, according to a company news release.
The Rule 144A deal was initially announced in July as a $50 million offering with plans to price with a coupon of 6% and an initial conversion premium of 10%.
The initial conversion price is $5.75. The conversion price was determined based on an equity valuation of $55.5 million, Prospect News reported.
The notes are convertible into shares of common stock or warrants to acquire an equal number of common stock at an exercise price of $0.0001, according to the news release.
An estimated 10,434,783 shares are issuable up conversion of the convertible notes and 5,742,364 shares are issuable upon exercise of the warrant. Approximately $24 million of net proceeds will be used to pay off its acquisition credit facility and $30 million to fully pay off its ABL credit facility and for general corporate purposes.
The convertible notes offering was the final step in a series of strategic transactions to realign the company’s capital structure, chairman and CEO Jeff Hastings said in the press release.
SAExploration is a Houston-based oilfield services company.
| Issuer: | SAExploration Holdings Inc.
|
| Securities: | Senior secured convertible notes
|
| Amount: | $60 million
|
| Maturity: | 2023
|
| Coupon: | 6%
|
| Price: | Par
|
| Conversion premium: | 10%
|
| Conversion price: | $5.75
|
| Pricing date: | Sept. 26
|
| Distribution: | Rule 144A
|
| Stock symbol: | Nasdaq: SAEX
|
| Stock price: | $12.20 at the market close Sept. 26
|
| Market capitalization: | $21.34 million
|
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