By Rebecca Melvin
New York, May 22 - Carrizo Oil & Gas Inc. priced an upsized $325 million of 20-year convertible senior notes to yield 4.375% with an initial conversion premium of 47.5%, according to a company release.
The offering size was increased from a previously announced $275 million.
Pricing on the notes came toward the cheap end of talk on the coupon, which was 4% to 4.5%, and at the mid-point of talk on the initial conversion premium, which was 45% to 50%.
Credit Suisse Securities and RBC Capital Markets Corp. are joint bookrunners, with JP Morgan Securities and UBS Securities LLC acting as co-managers.
The registered off-the-shelf notes have a greenshoe of $48.75 million, which was raised from $41.3 million.
The notes are non-callable for five years, with puts in years 2013, 2018 and 2023. The notes have contingent conversion at 130% of the conversion price, and net share settlement.
Proceeds are earmarked to repay Carrizo's second-lien credit facility and to fund, in part, its capital expenditure program for 2008, including drilling and land acquisition in the Barnett Shale in North Texas, the Marcellus Shale in Pennsylvania/New York/West Virginia and elsewhere, and for other corporate purposes.
Carrizo also expects to use remaining proceeds to repay borrowings outstanding under its senior revolving credit facility.
Houston-based Carrizo is an oil and natural gas exploration and development company.
| Issuer: | Carrizo Oil & Gas Inc.
|
| Issue: | Convertible senior notes
|
| Amount: | $325 million, upsized from $275 million
|
| Greenshoe: | $48.75 million, upsized from $41.3 million
|
| Maturity: | June 1, 2028
|
| Coupon: | 4.375%
|
| Price: | Par
|
| Yield: | 4.375%
|
| Conversion premium: | 47.5%
|
| Conversion ratio: | 9.9936
|
| Conversion price: | $100.06
|
| Call: | June 1, 2013 onwards
|
| Puts: | Puts on June 1 of 2013, 2018 and 2023
|
| Contingent conversion: | 130%
|
| Takeover protection: | Yes
|
| Dividend protection: | Yes
|
| Bookrunners: | Credit Suisse and RBC Capital Markets Corp., with JP Morgan Securities and UBS Securities LLC as co-managers
|
| Pricing date: | May 21
|
| Settlement: | May 28
|
| Distribution: | Off shelf
|
| Price talk: | 4%-4.5%, up 45%-50%
|
| Stock symbol: | Nasdaq: CRZO
|
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