Vantage Drilling Co. (VTG) announced that it has entered into an underwriting agreement with respect to an offering of $50 million aggregate principal amount of its 7.875% senior convertible notes due 2042.
In addition, the company has separately agreed to issue an additional $6.5 million aggregate principal amount of the notes to the Company's affiliate, F3 Capital, in exchange for a like portion of an existing promissory note payable by the Company to F3 Capital.
The company said it expects to use the net proceeds from the cash portion of this offering to fund capital expenditures and working capital needs as well as for general corporate purposes. The company noted that it will not receive any cash proceeds from the direct placement to F3 Capital.
The company expects to close the offerings on August 21, 2012, subject to customary closing conditions. The closing of the underwritten offering is not conditioned on the closing of the direct placement to F3 Capital.
The Notes will mature on September 1, 2042, unless earlier converted, repurchased or redeemed in accordance with the indenture governing the Notes. The Notes will bear interest at a rate of 7.875% per annum on the principal amount, payable semiannually in arrears on each March 1 and September 1, beginning on March 1, 2013.
The Notes will be subject to redemption by us at our option on or after September 1, 2015 and before September 1, 2017 if the volume weighted average price of ordinary shares is greater than or equal to 125% of the applicable conversion price for at least 20 trading days during any 30 consecutive trading day period ending within five trading days prior to the notice of redemption.
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