HOUSTON, April 15 /PRNewswire/ -- R&B Falcon Corporation (NYSE: FLC)
announced today that it proposes to make a private placement of $300 million
of new Senior Cumulative Redeemable Preferred Stock. These securities will
carry a dividend of 13 7/8% per annum and will be subject to mandatory
redemption by the company on May 1, 2009. For the first five years, the
company will have the option to pay dividends in kind with additional shares
of preferred stock. Purchasers of the new preferred stock will also receive
warrants to acquire, in the aggregate, 10,500,000 shares of the company's
common stock at a price of $9.50 per share prior to May 1, 2009. This
transaction is expected to close April 22, 1999.
The proposed new securities will not be registered under the Securities
Act of 1933, as amended, or any state securities laws and may not be offered
or sold in the United States absent registration or an applicable exemption
from registration requirements. This press release shall not constitute an
offer to sell or a solicitation of an offer to buy nor shall there be any sale
of these securities in any state in which such offer, solicitation or sale
would be unlawful.
SOURCE R&B Falcon Corporation
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Related links:
http://www.rbfalcon.com
Company News On-Call:
http://www.prnewswire.com/comp/118988.html or fax,
800-758-5804, ext. 118988
CONTACT:
Charles R. Ofner of R&B Falcon Corporation,
281-496-5000
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