Stone Energy Corporation Announces Pricing of Private Offering of $275M of Convertible Notes

Stone Energy Corporation SGY today announced the pricing of its private offering of $275 million aggregate principal amount of Convertible Notes due 2017. The private offering was upsized from the previously announced $250 million aggregate principal amount of Convertible Notes. The Convertible Notes were offered to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended. The Company granted an over-allotment option to the initial purchasers for up to an additional $25 million aggregate principal amount of Convertible Notes. The Convertible Notes will pay interest semiannually at a rate of 1.75% and will be convertible into cash, shares of the Company's common stock or a combination of cash and shares of the Company's common stock, at the Company's election, based on the applicable conversion rate at such time. The Convertible Notes have an initial conversion rate of 23.4449 shares of the Company's common stock per $1,000 principal amount of the Convertible Notes (which is equal to an initial conversion price of approximately $42.65 per share of the Company's common stock), representing an initial conversion premium of approximately 33.5% above the closing price of $31.95 per share of the Company's common stock on February 29, 2012. The Convertible Notes will mature on March 1, 2017, unless repurchased or converted in accordance with their terms prior to such date. Prior to December 1, 2016, the Convertible Notes will be convertible only upon the occurrence of certain events and during certain periods, and thereafter, at any time until the second scheduled trading day immediately preceding the maturity date. The Company expects to close the offering on or about March 6, 2012, subject to the satisfaction of various customary closing conditions.