SEACOR Announces Adjustment to the Conversion Rate of Its 2.50% Convertible Senior Notes Due 2027 and Its 3.00% Convertible S...
June 19 2017 - 4:29PM
SEACOR Holdings Inc. (NYSE:CKH) (“SEACOR” or the “Company”) today
announced an adjustment to the conversion rate of its 2.50%
convertible senior notes due 2027 (the “Notes due 2027”) and its
3.00% convertible senior notes due 2028 (the “Notes due 2028”) in
connection with its distribution of all of the outstanding shares
of common stock of its subsidiary, SEACOR Marine Holdings Inc., on
June 1, 2017 (the “spin-off”). The ex-dividend date for the
spin-off was June 2, 2017. As a result of the spin-off, the
conversion rates were adjusted as follows:
- The conversion rate for the Notes due 2027 was adjusted to
18.4176 from 12.0015 shares of the Company’s common stock per
$1,000 principal amount of the Notes due 2027, equivalent to an
adjusted conversion price of approximately $54.30 per share,
compared to the prior price of approximately $83.32 per share.
- The conversion rate on the Notes due 2028 was adjusted to
12.1789 from 7.9362 shares of the Company’s common stock per $1,000
principal amount of the Notes due 2028, equivalent to an adjusted
conversion price of approximately $82.11 per share, compared to the
prior price of approximately $126.00 per share.
About SEACOR
SEACOR is a diversified holding company with
interests in domestic and international transportation and
logistics, alcohol manufacturing and merchandising, and risk
management consultancy.
Cautionary Note Regarding
Forward-Looking Statements
Certain statements discussed in this release as
well as in other reports, materials and oral statements that the
Company releases from time to time to the public constitute
“forward-looking statements” within the meaning of the Private
Securities Litigation Reform Act of 1995. Generally, words such as
“anticipate,” “estimate,” “expect,” “project,” “intend,” “believe,”
“plan,” “target,” “forecast” and similar expressions are intended
to identify forward-looking statements. Such forward-looking
statements concern management’s expectations, strategic objectives,
business prospects, anticipated economic performance and financial
condition and other similar matters. These statements are not
guarantees of future performance and actual events or results may
differ significantly from these statements. Actual events or
results are subject to significant known and unknown risks,
uncertainties and other important factors, including decreased
demand and loss of revenues as a result of a decline in the price
of oil and resulting decrease in capital spending by oil and gas
companies, an oversupply of newly built offshore support vessels,
additional safety and certification requirements for drilling
activities in the U.S. Gulf of Mexico and delayed approval of
applications for such activities, the possibility of U.S.
government implemented moratoriums directing operators to cease
certain drilling activities in the U.S. Gulf of Mexico and any
extension of such moratoriums, weakening demand for the Company’s
services as a result of unplanned customer suspensions,
cancellations, rate reductions or non-renewals of vessel charters
or failures to finalize commitments to charter vessels in response
to a decline in the price of oil, an oversupply of newly built
offshore support vessels, increased government legislation and
regulation of the Company’s businesses could increase cost of
operations, increased competition if the Jones Act is repealed,
liability, legal fees and costs in connection with the provision of
emergency response services, including the Company’s involvement in
response to the oil spill as a result of the sinking of the
Deepwater Horizon in April 2010, decreased demand for the Company’s
services as a result of declines in the global economy, declines in
valuations in the global financial markets and a lack of liquidity
in the credit sectors, including, interest rate fluctuations,
availability of credit, inflation rates, change in laws, trade
barriers, commodity prices and currency exchange fluctuations, the
cyclical nature of the oil and gas industry, activity in foreign
countries and changes in foreign political, military and economic
conditions, including as a result of the recent vote in the U.K. to
leave the European Union, changes in foreign and domestic oil and
gas exploration and production activity, safety record requirements
related to Offshore Marine Services and Shipping Services,
decreased demand for Shipping Services due to construction of
additional refined petroleum product, natural gas or crude oil
pipelines or due to decreased demand for refined petroleum
products, crude oil or chemical products or a change in existing
methods of delivery, compliance with U.S. and foreign government
laws and regulations, including environmental laws and regulations
and economic sanctions, the dependence of Offshore Marine Services,
Inland River Services, Shipping Services and Illinois Corn
Processing on several key customers, consolidation of the Company’s
customer base, the ongoing need to replace aging vessels, industry
fleet capacity, restrictions imposed by the Shipping Acts on the
amount of foreign ownership of the Company’s Common Stock,
operational risks of Offshore Marine Services, Inland River
Services and Shipping Services, effects of adverse weather
conditions and seasonality, the level of grain export volume, the
effect of fuel prices on barge towing costs, variability in freight
rates for inland river barges, the effect of international economic
and political factors on Inland River Services’ operations, the
effect of the spread between the input costs of corn and natural
gas compared with the price of alcohol and distillers grains on
Illinois Corn Processing’s operations, adequacy of insurance
coverage, the ability to remediate the material weaknesses the
Company has identified in its internal controls over financial
reporting, the attraction and retention of qualified personnel by
the Company, and various other matters and factors, many of which
are beyond the Company’s control as well as those discussed in Item
1A (Risk Factors) of the Company’s Annual report on Form 10-K and
other reports filed by the Company with the SEC. It should be
understood that it is not possible to predict or identify all such
factors. Consequently, the preceding should not be considered to be
a complete discussion of all potential risks or uncertainties.
Forward-looking statements speak only as of the date of the
document in which they are made. The Company disclaims any
obligation or undertaking to provide any updates or revisions to
any forward-looking statement to reflect any change in the
Company’s expectations or any change in events, conditions or
circumstances on which the forward-looking statement is based,
except as required by law. It is advisable, however, to consult any
further disclosures the Company makes on related subjects in its
filings with the Securities and Exchange Commission, including
Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q and
Current Reports on Form 8-K (if any). These statements constitute
the Company’s cautionary statements under the Private Securities
Litigation Reform Act of 1995.
For additional information, contact Molly Hottinger at (954) 627-5278.
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