Helix Energy Solutions Group Repurchases $160 Million in 6.75% Convertible Senior Notes Due 2026

Strategic Insights -

Helix Energy Solutions Group, Inc. (HELIX) has completed the repurchase of its 6.75% Convertible Senior Notes due 2026 in a deal worth $160 million, with the company exchanging approximately 1.5 million shares of its common stock for the notes. The transaction was completed on December 27, 2023. In addition to the shares, the company also received approximately $218 million in cash consideration, including accrued interest, and net of approximately $16 million received from capped call unwind transactions. Following the repurchase, approximately $40 million in aggregate principal amount of the 2026 Notes remain outstanding.

Key Takeaways:

  • Helix Energy Solutions Group repurchased $160 million in 6.75% Convertible Senior Notes due 2026 on December 27, 2023, exchanging approximately 1.5 million shares of its common stock for the notes.
  • The company received approximately $218 million in cash consideration, including accrued interest, and net of approximately $16 million received from capped call unwind transactions.
  • The Repurchases were completed pursuant to certain privately negotiated purchase and exchange agreements entered into between HELIX and certain holders of its 2026 Notes.
  • Approximately $40 million in aggregate principal amount of the 2026 Notes remain outstanding after the Repurchases.
  • The Exchange Shares have not been and will not be registered under the Securities Act or the securities laws of any other jurisdiction, and such securities may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements.
  • The company terminated a portion of the capped call transactions entered into in connection with the issuance of the 2026 Notes in a notional amount corresponding to the number of shares of the Company's common stock underlying the 2026 Notes repurchased.

Statistics:

  • $160 million in 6.75% Convertible Senior Notes due 2026 repurchased by HELIX.
  • 1.5 million shares of HELIX common stock exchanged for the repurchased notes.
  • $218 million in cash consideration, including accrued interest, received by HELIX.
  • $16 million in cash received by HELIX from capped call unwind transactions.
  • Approximately $40 million in aggregate principal amount of the 2026 Notes remaining outstanding after the Repurchases.
  • 6.75% Convertible Senior Notes due 2026 were repurchased, with approximately $160 million aggregate principal amount of the notes repurchased.

Sources:

  • Form 8-K filed by Helix Energy Solutions Group, Inc. with the UNITED STATES SECURITIES AND EXCHANGE COMMISSION on December 27, 2023.