Subsea 7 Inc issues the pricing of its private placement of $275 million convertible bond due 2014 (the “Bonds”). The size of the issue was upsized from US$200 million due to exceptionally strong investor demand.

The proceeds from the Bonds will be used for general corporate purposes and for refinancing convertible debt.

The senior unsecured convertible Bonds will have an annual coupon of 3.50% payable semi-annually in arrears and a conversion price of US$ 17.98 per bond representing a conversion premium of 37.5% of the volume weighted average price of the Company`s shares on the Oslo Stock Exchange (converted into US$).

The Reference Price of the Company`s shares was set at US$ 13.08 (based on a volume weighted average price of NOK 76.02 , and the exchange rate of NOK 5.81 / USD1.00). The total number of underlying common shares to be issued if all bonds are converted is 15,294,772 shares

The Bonds will be issued and redeemed at 100% of their principal amount and will, unless converted or purchased and cancelled, mature in October 2014.

The Bonds are expected to be settled on or around October 13 October, 2009. The bonds will be unlisted, however Subsea 7 may decide to list the bonds on an exchange at a later stage.

This announcement does not constitute or form part of an offer to sell or the solicitation of an offer to subscribe for any securities of Subsea 7.

Tags: Subsea 7