Vantage Drilling Company announced 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 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.
This announcement does not constitute an offer to sell, or the solicitation of an offer to buy, any of the notes. Any offers of the notes will be made only by means of a confidential offering memorandum. The notes and the ordinary shares of the Company underlying the notes have not been and will not be registered under the Securities Act of 1933, as amended, or the securities laws of any other jurisdiction and may not be offered or sold in the United States without registration or an applicable exemption from registration requirements.
[mappress]
Press Release, July 11, 2013; Image: Vantage Drilling