By Rebecca Melvin
New York, July 18 - Underwriters for Cal Dive International Inc.'s new five-year convertible senior notes exercised the $11.25 million over-allotment option in full, lifting the size of the deal to $86.25 million, according to a term sheet.
As previously reported, the notes due July 15, 2017 were priced on July 12 at par to yield 5% with an initial conversion premium of 20%.
The Rule 144A deal was sold via joint bookrunners Wells Fargo Securities LLC and Merrill Lynch, Pierce, Fenner & Smith Inc., with co-managers Nataxis Securities Americas LLC, Howard Weil Inc., Capital One Southcoast Inc., and Banco Bilbao Vizcaya Argentaria SA.
As previously reported, the bonds priced with an initial conversion price of $2.24 per share, versus the July 12 closing stock price of $1.87.
The notes are convertible prior to April 15, 2017 under certain conditions, and are convertible into cash, common stock, or a combination at Cal Dive's option. They have takeover protection in the form of a make whole table.
Proceeds will be used to repay part of the company's senior secured term loan.
Cal Dive is a Houston-based offshore oil and gas company.
| Issuer: | Cal Dive International Inc.
|
| Securities: | Convertible senior notes
|
| Amount: | $75 million
|
| Greenshoe: | $11.25 million
|
| Maturity: | July 15, 2017
|
| Bookrunners: | Wells Fargo Securities LLC and Merrill Lynch, Pierce, Fenner & Smith Inc.
|
| Co-managers: | Nataxis Securities Americas LLC, Howard Weil Inc., Capital One Southcoast Inc., and Banco Bilbao Vizcaya Argentaria SA.
|
| Coupon: | 5%
|
| Price: | Par
|
| Yield: | 5%
|
| Initial conversion premium: | 20%
|
| Initial conversion price: | $2.24
|
| Initial conversion rate: | 445.6328 shares
|
| Contingent conversion: | Yes
|
| Takeover protection: | Yes
|
| Net share settlement: | Yes
|
| Pricing date: | July 12
|
| Settlement date: | July 18
|
| Distribution: | Rule 144A
|
| Stock symbol: | NYSE: DVR
|
| Stock price: | $1.87 at close on July 12
|
| Market capitalization: | $181 million
|
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