Vantage Drilling Company announced today that it proposes to offer $75 million aggregate principal amount of convertible senior notes due 2043, subject to market conditions and other factors.
The notes are to be offered and sold only to qualified institutional buyers pursuant to Rule 144A or to persons outside of the United States pursuant to Regulation S of the Securities Act of 1933, as amended. The company also expects to grant to the initial purchaser an option to purchase up to an additional $15 million aggregate principal amount of the notes on the same terms and conditions.
The company intends to use a portion of the net proceeds from the offering to fund the initial payment of $59.5 million under the construction contract for the Cobalt Explorer drillship and the remainder for general corporate purposes.
The notes will be the general senior unsecured obligations of the company and will accrue interest payable semi-annually in arrears. The notes will be convertible into our ordinary shares, cash or a combination of ordinary shares and cash, at the company’s election. The interest rate, conversion rate, offering price and other terms of the notes will be determined by negotiations among the company and the initial purchaser of the notes.
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Vantage Drilling, July 11, 2013