Oceaneering International said it will sell $500 million of senior notes due 2034 in a private placement and use the proceeds, along with cash on hand if needed, to help fund a cash tender offer for its 6.000% senior notes due 2028.
The company said the new notes offering is tied directly to the concurrent tender offer announced the same day. If the tender offer is completed, Oceaneering plans to use the net proceeds to buy any and all 2028 notes that are validly tendered and accepted. If the tender offer is not completed, or if the new debt raises more cash than is needed for the buyback, Oceaneering said the leftover proceeds would go toward general corporate purposes, including possible repayment, redemption or repurchase of other debt.
The 2034 notes are being offered in a private placement to qualified institutional buyers in the U.S. and to non-U.S. investors outside the U.S. The company did not disclose pricing terms in the release. Today the company's shares have moved -0.77% to a price of $36.00. If you want to know more, read the company's complete 8-K report here.
