Sequa Petroleum to price up to $300 million five-year convertibles with 21% conversion premium

By Rebecca Melvin

New York, April 22 – Sequa Petroleum NV launched an offering of up to $300 million of five-year convertible bonds with an initial conversion premium of 21%, which is expected to see final terms on Wednesday, according to a news release.

Repayment of an existing shareholder loan, drawn down by about $126 million, will be settled by issuing the bonds in exchange for the loan. Remaining bonds will be offered to third-party investors.

The initial conversion price of the Regulation S deal is $3.50.

Anoa capital SA is acting as sole global coordinator, with ADS Securities LLC, Abu Dhabi, as joint bookrunner.

Proceeds are earmarked to finance its acquisition activities and for other general financing and corporate purposes.

The bond issue is expected to be listed on the Cayman Islands stock exchange.

Sapinda Asia Ltd., an existing shareholder, has entered into a commitment to subscribe for up to $62.5 million of additional ordinary shares in Sequa during 2015.

Sequa is an oil and gas reserves developer and a subsidiary of Sapinda Holdings BV, an investment holding company based in the Netherlands.

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