By Rebecca Melvin
New York, Nov. 5 – BW Offshore Ltd. has priced $300 million of five-year convertible bonds at par to yield 2.5% with an initial conversion premium of 37.5%, according to a company news release on Tuesday.
The Regulation S deal came at the cheap end of talk for a 2% to 2.5% coupon and at the midpoint of talk for a 35% to 40% initial conversion premium.
The initial conversion price will be set based on the volume weighted average price of shares on the Oslo Stock Exchange between opening and closing of trade on Tuesday.
BNP Paribas and DNB Markets were acting as joint global coordinators and joint bookrunners of the offering, for which a $50 million over-allotment option was exercised together with pricing of the $250 million base deal.
The proceeds of the convertible paper will be used to refinance existing debt and for general corporate purposes.
BW Offshore provides floating production services to the oil and gas industry. The company has headquarters in Singapore and Oslo.
| Issuer: | BW Offshore Ltd.
|
| Issue: | Convertible bonds
|
| Amount: | $300 million, including $50 million exercised greenshoe
|
| Maturity: | Nov. 12, 2024
|
| Bookrunners: | BNP Paribas and DNB Markets
|
| Coupon: | 2.5%
|
| Price: | Par
|
| Yield: | 2.5%
|
| Conversion premium: | 37.5%
|
| Calls: | Non-callable except for clean up call
|
| Pricing date: | Nov. 5
|
| Settlement date: | Nov. 12
|
| Distribution: | Regulation S
|
| Price talk: | 2%-2.5%, up 35%-40%
|
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