0001437749-20-025044.txt : 20201209 0001437749-20-025044.hdr.sgml : 20201209 20201209163020 ACCESSION NUMBER: 0001437749-20-025044 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 15 CONFORMED PERIOD OF REPORT: 20201208 ITEM INFORMATION: Other Events ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20201209 DATE AS OF CHANGE: 20201209 FILER: COMPANY DATA: COMPANY CONFORMED NAME: SEACOR HOLDINGS INC /NEW/ CENTRAL INDEX KEY: 0000859598 STANDARD INDUSTRIAL CLASSIFICATION: DEEP SEA FOREIGN TRANSPORTATION OF FREIGHT [4412] IRS NUMBER: 133542736 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-12289 FILM NUMBER: 201378186 BUSINESS ADDRESS: STREET 1: 2200 ELLER DRIVE STREET 2: PO BOX 13038 CITY: FORT LAUDERDALE STATE: FL ZIP: 33316 BUSINESS PHONE: 954 523-2200 MAIL ADDRESS: STREET 1: 2200 ELLER DRIVE STREET 2: PO BOX 13038 CITY: FORT LAUDERDALE STATE: FL ZIP: 33316 FORMER COMPANY: FORMER CONFORMED NAME: SEACOR SMIT INC DATE OF NAME CHANGE: 19970515 FORMER COMPANY: FORMER CONFORMED NAME: SEACOR HOLDINGS INC DATE OF NAME CHANGE: 19950327 FORMER COMPANY: FORMER CONFORMED NAME: SEACORE HOLDINGS INC DATE OF NAME CHANGE: 19950313 8-K 1 seah20201208_8k.htm FORM 8-K seah20201208_8k.htm
false 0000859598 0000859598 2020-12-08 2020-12-08
 
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
 
FORM 8-K
 
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
 
Date of Report (Date of earliest event reported): December 8, 2020
 
SEACOR Holdings Inc.
(Exact Name of Registrant as Specified in Its Charter)
 
 
Delaware
1-12289
13-3542736
(State or Other Jurisdiction
of Incorporation)
(Commission
File Number)
(IRS Employer
Identification No.)
 
 
2200 Eller Drive, Fort Lauderdale, Florida
33316
(Address of Principal Executive Offices)
(Zip Code)
 
 
Registrant's telephone number, including area code
(954) 523-2200
 
 
Not Applicable
(Former Name or Former Address, if Changed Since Last Report)
 
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
 
 
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
 
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
 
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
 
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
 
Securities registered pursuant to Section 12(b) of the Act:
 
Title of each class
 
Trading Symbol(s)
 
Name of each exchange on which registered
Common Stock, par value $0.01 per share
 
CKH
 
New York Stock Exchange
 
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
 
Emerging growth company
 
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
 
 

 
Item 8.01
Other Events.
 
On December 8, 2020, SEACOR Holdings Inc. (the “Company”) delivered notices (the “Notices”) to Wells Fargo Bank, National Association (the “Trustee”) and the holders of the Company’s (i) 2.50% Convertible Senior Notes due 2027 (the “2027 Notes”) and (ii) 3.25% Convertible Senior Notes due 2030 (the “2030 Notes” together with the 2027 Notes, the “Notes”) of an anticipated Make-Whole Fundamental Change (as defined in each of the indentures governing the 2027 Notes and the 2030 Notes (the “Indentures”)).
 
The anticipated Make-Whole Fundamental Change will occur upon consummation of the transactions contemplated by the Agreement and Plan of Merger, dated as of December 4, 2020 (the “Merger Agreement”), among Safari Parent, Inc., a Delaware corporation (“Parent”), Safari Merger Subsidiary, Inc., a Delaware corporation and a wholly owned subsidiary of Parent (“Merger Sub”), and the Company, pursuant to which Merger Sub will commence a tender offer (the “Offer”) to acquire all of the issued and outstanding shares of the Company’s common stock, par value $0.01 per share (the “Common Stock”) (subject to certain exceptions) at a price of $41.50 per share, net to the seller of such shares in cash, without interest and subject to any required withholding of taxes, on the terms and conditions set forth in the Merger Agreement. Following the consummation of the Offer and subject to the terms and conditions of the Merger Agreement, Merger Sub will merge with and into the Company pursuant to Section 251(h) of the Delaware General Corporation Law, with the Company surviving the merger as a wholly owned subsidiary of Parent (the “Merger”).
 
As a result of the delivery of the Notices, holders of the Notes have the right to surrender their Notes for conversion at any time beginning on December 9, 2020 and ending on, and including, the Business Date immediately preceding Fundamental Change Purchase Date (as defined in the Indentures) for the anticipated Make Whole Fundamental Change.
 
The conversion rate for the (i) 2027 Notes is equal to 19.0831 shares of Company’s common stock, par value $0.01 per share (the “Common Stock”) per $1,000 principal amount of the 2027 Notes (equivalent to a conversion price of $52.52) and (ii) the 2030 Notes is equal to 13.192 shares of Common Stock per $1,000 principal amount of the 2030 Notes (equivalent to a conversion price of $75.80). The Company will deliver a notice of Settlement Method to Holders converting through the Trustee no later than the Close of Business on the Scheduled Trading Day immediately following the date on which the Holder delivers to the Conversion Agent its interest in the Global Note to be converted. After the Effective Date of the Make-Whole Fundamental Change, all conversions will be settled in cash pursuant to the provisions of Section 4.07(b) of each Indenture.
 
If the Offer and Merger are consummated, then, in accordance with the Indenture, the Company will be required to offer to repurchase Holders’ Notes at par in accordance with the terms of the Indentures and will, at the appropriate time, send a Fundamental Change Company Notice (as defined in the Indentures) to Holders.
 
This Current Report on Form 8-K does not constitute an offer to tender for, or purchase, or a solicitation of an offer to tender for, or purchase, any of the Notes or any other security.
 
A copy of each Notice is attached hereto as Exhibits 99.1 and 99.2 and incorporated into this Item 8.01 by reference.
 
Cautionary Note Regarding Forward Looking Statements
 
This Current Report on Form 8-K includes “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Certain statements discussed in this communication as well as in other reports, materials and oral statements that the Company releases from time to time 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, including statements about the potential benefits of the proposed transaction, the prospective performance and outlook of the surviving company’s business, performance and opportunities, the ability of the parties to complete the proposed transaction and the expected timing of completion of the proposed transaction. Such forward-looking statements concern management’s expectations, strategic objectives, business prospects, anticipated economic performance and financial condition and other similar matters. Forward-looking statements are inherently uncertain and subject to a variety of assumptions, risks and uncertainties that could cause actual results to differ materially from those anticipated or expected by management of the Company. 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 (i) uncertainties as to the timing and expected financing of the tender offer; (ii) the risk that the proposed transaction may not be completed, or if it is completed, that it will close in a timely manner; (iii) the possibility that competing offers or acquisition proposals for the Company will be made; (iv) uncertainty surrounding how many of the Company’s stockholders will tender their shares in the tender offer; (v) the possibility that any or all of the various conditions to the consummation of the tender offer may not be satisfied or waived; (vi) the possibility of business disruptions due to transaction-related uncertainty and the response of business partners to the announcement, including customers; (vii) the occurrence of any event, change or other circumstance that could give rise to the termination of the merger agreement; (viii) the risk that stockholder litigation in connection with the proposed transaction may result in significant costs of defense, indemnification and liability; (ix) risks relating to the COVID-19 pandemic, including the volatility the pandemic has caused in the capital markets and the effects it has had and could continue to have on the global economy and (x) various other matters and factors 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. Given these factors, investors and analysts should not place undue reliance on forward-looking statements. 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 SEC, 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.
 
2

 
Additional Information and Where to Find It
 
The tender offer described in this Current Report on Form 8-K has not yet commenced. This Current Report on Form 8-K is for informational purposes only and is neither an offer to purchase nor a solicitation of an offer to sell shares of the Company, nor is it a substitute for any tender offer materials that Parent, Merger Sub or the Company will file with the SEC. A solicitation and an offer to buy shares of the Company will be made only pursuant to an offer to purchase and related materials that Parent intends to file with the SEC. At the time the tender offer is commenced, Parent will file a Tender Offer Statement on Schedule TO with the SEC, and the Company will file a Solicitation/Recommendation Statement on Schedule 14D-9 with the SEC with respect to the tender offer. THE COMPANY’S STOCKHOLDERS AND OTHER INVESTORS ARE URGED TO READ THE TENDER OFFER MATERIALS (INCLUDING AN OFFER TO PURCHASE, A RELATED LETTER OF TRANSMITTAL AND CERTAIN OTHER TENDER OFFER DOCUMENTS) AND THE SOLICITATION/RECOMMENDATION STATEMENT BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION WHICH SHOULD BE READ CAREFULLY BEFORE ANY DECISION IS MADE WITH RESPECT TO THE TENDER OFFER. The Offer to Purchase, the related Letter of Transmittal and certain other tender offer documents, as well as the Solicitation/Recommendation Statement, will be sent to all stockholders of the Company at no expense to them. The Tender Offer Statement and the Solicitation/Recommendation Statement will be made available for free at the SEC’s web site at www.sec.gov. Additional copies may be obtained for free by contacting the Company. Free copies of these materials and certain other offering documents will be made available by the Company upon request, by mail to SEACOR Holdings Inc., 2200 Eller Drive, Fort Lauderdale, FL 33316, attention: Investor Relations, or by phone at 1-954-523-2200, or by directing requests for such materials to the information agent for the offer, which will be named in the Tender Offer Statement. Copies of the documents filed with the SEC by the Company will be available free of charge under the “Investors” section of the Company’s internet website at seacorholdings.com.
 
In addition to the Offer to Purchase, the related Letter of Transmittal and certain other tender offer documents, as well as the Solicitation/Recommendation Statement, The Company files annual, quarterly and current reports, proxy statements and other information with the SEC. The Company’s filings with the SEC are also available for free to the public from commercial document-retrieval services and at the website maintained by the SEC at www.sec.gov.

Item 9.01 Financial Statements and Exhibits.
 
Exhibit No.
  
99.1
99.2
104
Cover Page Interactive Data File (embedded within the Inline XBRL document)
 
3

 
SIGNATURES
 
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
 
  SEACOR Holdings Inc.  
     
     
  By: /s/ William C. Long  
 
Name:
William C. Long
 
 
Title
Executive Vice President
 
 
 
Chief Legal Officer and Corporate Secretary
 
 
 
Date: December 9, 2020
 
 
EX-99.1 2 ex_216841.htm EXHIBIT 99.1 ex_216841.htm
 

Exhibit 99.1

 

 

December 8, 2020

 

CEDE & Co

The Depository Trust Company

(As holder of the global note evidencing

the 2.50% Convertible Senior Notes due

2027 of SEACOR Holdings Inc.)

PO Box 20

Bowling Green Station

New York, NY 10004

 

Wells Fargo, Bank, N.A., as Trustee and Conversion Agent

600 South 4th Street, 6th Floor

MAC N9300-060

Minneapolis, MN 55415

Attn: SEACOR Holdings Inc. Account Manager

 

 

Re:

SEACOR Holdings Inc. 2.50% Convertible Senior Notes due 2027 (CUSIP: 811904AM3) Notice of Make-Whole Fundamental Change

 

Ladies and Gentlemen:

 

Reference is made to that certain Indenture, dated as of December 11, 2012 (the “Indenture”), by and between SEACOR Holdings Inc., a Delaware corporation (the “Company” or “SEACOR”), and Wells Fargo Bank, National Association, as trustee (the “Trustee”), pursuant to which the Company’s 2.50% Convertible Senior Notes due 2027 (the “Notes”) were issued. Capitalized terms used but not defined herein shall have the meanings ascribed to them in the Indenture.

 

On December 4, 2020, the Company entered into an Agreement and Plan of Merger (the “Merger Agreement”) among Safari Parent, Inc., a Delaware corporation (“Parent”), Safari Merger Subsidiary, Inc., a Delaware corporation and a wholly owned subsidiary of Parent (“Merger Sub”), and SEACOR.

 

Pursuant to the terms and subject to the conditions set forth in the Merger Agreement, Merger Sub will commence a tender offer (the “Offer”) to acquire all of the issued and outstanding shares (the “Shares”) of common stock, par value $0.01 per share (the “Common Stock”), of SEACOR, subject to exception related to Common Stock owned by Merger Sub or Parent, if any, or treasury shares owned by SEACOR, at a price of $41.50 per Share (the “Offer Price”), all on the terms and subject to the conditions set forth in the Merger Agreement. The obligation of Merger Sub to accept for purchase and pay for the Shares pursuant to the Offer is subject to customary conditions, including, among others, that at least 66 and 2/3% of the outstanding Shares are tendered in the Offer. Following the consummation of the Offer and subject to the terms and conditions of the Merger Agreement, Merger Sub will merge with and into SEACOR pursuant to Section 251(h) of the Delaware General Corporation Law (the “DGCL”), with SEACOR emerging as the surviving corporation (the “Merger”). Pursuant to the terms of the Merger Agreement, if the Merger is completed, holders of Shares that did not participate in the Offer (excluding any dissenting Shares subject to appraisal rights under the DGCL) will receive cash consideration of $41.50 per share in the Merger, the same consideration payable to holders of Shares that participate in the Offer.

 

Upon consummation of the Merger, the Notes will remain obligations of the Company.

 

Notice of Convertibility of the Notes

 

In accordance with Article 3 of the Indenture, notice is hereby given that a Make-Whole Fundamental Change will occur upon the consummation of the Offer as a result of the acquisition of in excess of 50% of the outstanding Common Stock by Merger Sub. An additional Make-Whole Fundamental Change will occur upon the consummation of the Merger and resulting de-listing of the Common Stock from the New York Stock Exchange. Accordingly, solely for the purpose of providing notice under Section 4.01(b)(iv) of the Indenture, the Company currently anticipates that the date on which the Make-Whole Fundamental Change will become effective will be January 18, 2021 (the “Anticipated Effective Date”). The Company is unable to give any assurances as to the actual date on which the Offer and Merger will be consummated, if at all, because each of the Offer and the Merger remains subject to regulatory approval and other closing conditions, and it is possible the Effective Date will occur prior to January 18, 2021.

 

- 1 -

 

Pursuant to Article 4 of the Indenture, Holders may surrender Notes for conversion at any time during the period that:

 

 

begins on December 9, 2020 the Business Day after the Company has given notice to the Holders of the potential Make-Whole Fundamental Change; and

 

 

ends on, and includes, the Business Day immediately preceding the Fundamental Change Purchase Date, which the Company will publicly announce in a notice sent to each Holder within fifteen (15) calendar days after the Merger Closing (the “Fundamental Change Company Notice”).

 

The Conversion Rate in effect on the date of this notice is 19.0381 shares of Common Stock per $1,000 principal amount of Notes, equal to a Conversion Price of $52.52 per share of Common Stock.

 

Holders should be aware that Article 4 of the Indenture governs the conversion procedure for Notes surrendered for conversion. The Company will use the same Settlement Method for all conversions occurring on the same Conversion Date prior to the Effective Date of the Make-Whole Fundamental Change, but does not have an obligation to use the same Settlement Method with respect to conversions that occur on different Trading Days prior to the Effective Date of the Make-Whole Fundamental Change. The Company will deliver a notice of Settlement Method to Holders converting through the Trustee no later than the Close of Business on the Scheduled Trading Day immediately following the Conversion Date. After the Effective Date of the Make-Whole Fundamental Change all conversions will be settled in cash pursuant to the provisions of Section 4.07(b) of the Indenture.

 

Notice of Make-Whole Fundamental Change

 

If the Offer and Merger are consummated, upon the closing, a Make-Whole Fundamental Change will occur. Notwithstanding the Make-Whole Fundamental Change, no increase to the Conversion Rate applicable to the Notes that are surrendered for conversion after the Effective Date of the Make-Whole Fundamental Change is applicable as the consideration payable in the Offer and Merger is less than $42.82, the adjusted lower limit on Conversion Rate adjustments in connection with Make-Whole Fundamental Changes as set forth in Section 4.07(d)(iii) of the Indenture.

 

Please refer to Article 4 of the Indenture for a more complete description of the Notice of Make-Whole Fundamental Change.

 

Conversion Procedures

 

A Holder may convert a portion of a Note, but only if that portion is an integral multiple of $1,000 in principal amount.

 

The Company will pay any documentary, stamp or similar issue or transfer tax or duties, if any, relating to the issuance or delivery of shares of securities upon conversion of a Note. However, a Holder that converts a Note must pay any such tax or duty that is due because such securities or other consideration are issued in a name other than such Holder’s name.

 

The Trustee has informed the Company that, as of the date of this Notice, The Depository Trust Company (“DTC”) is the sole registered Holder of the Notes, all custodians and beneficial holders of the Notes hold the Notes through DTC accounts and there are no certificated Notes in non-global form. To convert a beneficial interest in a Note that is a Global Security, the Holder must, in addition to complying with any other rules and procedures of DTC:

 

(1) cause there to be completed and delivered an appropriate instruction form for conversion, in accordance with the rules and procedures of DTC;

 

(2) cause there to be delivered to the Conversion Agent, through the facilities of DTC, in accordance with the rules and procedures of DTC, the interest in the Global Security to be converted;

 

- 2 -

 

(3) pay the amount of interest, if any, the Holder must pay in accordance with the Indenture (see “Interest Payments” below); and

 

(4) pay any tax or duty if required pursuant to the Indenture.

 

Interest Payments

 

Except as provided in the Notes or in Article 4 of the Indenture, no payment or adjustment will be made for accrued and unpaid interest on a converted Note or for dividends on any Common Stock issued on or prior to conversion. If a Holder surrenders a Note for conversion after 5:00 p.m. New York City time (the “Close of Business”) on a Regular Record Date for the payment of an installment of interest, the Holder must accompany such Note with an amount of cash equal to the amount of interest that will be payable on such Note on the next Interest Payment Date; provided, however, that no payment is necessary if the Company has specified a Fundamental Change Purchase Date that is after a Regular Record Date and on or prior to the third Business Day immediately following the next Interest Payment Date, or for any overdue interest existing, if any, at the time of conversion.

 

The Notes bear interest at an annual rate of 2.50%, payable semi-annually in arrears, computed on the basis of a 360-day year of twelve 30-day months. The interest payment dates for the Notes are June 15 and December 15 of each year, and the corresponding record dates are the immediately preceding June 1 and December 1, respectively.

 

Conversion Date

 

The Conversion Date, as set forth in the Indenture, is the date on which the Holder delivers to the Conversion Agent, by book-entry transfer through the facilities of DTC in accordance with the rules and procedures of DTC, its interest in the Global Note to be converted.

 

If the Offer and Merger Are Consummated, Company Obligation to Offer Repurchase Option to All Holders

 

If the Offer and Merger are consummated, then, in accordance with the Indenture, the Company also will send a Fundamental Change Company Notice. This Fundamental Change Company Notice will set forth the information required by Article 3 of the Indenture, including but not limited to, the date of the effective date of the Fundamental Change, the Fundamental Change Purchase Price and the Fundamental Change Purchase Date, as defined below.

 

Pursuant to Article 3 of the Indenture, each Holder of Notes shall have the right (the “Fundamental Change Purchase Right”), at such Holder’s option, to require SEACOR to repurchase all of such Holder’s Notes (or portions thereof that are integral multiples of $1,000 in principal amount), on a date selected by the Company (the “Fundamental Change Purchase Date”), which shall be not less than twenty (20) Business Days, nor more than thirty-five (35) Business Days, after the date the Fundamental Change Company Notice is sent in accordance with the Indenture. Upon the satisfaction of the requirements of Article 3 of the Indenture, the Holder’s repurchase option shall require the Company to repurchase all of such Holder’s Notes at a price, payable in cash, equal to one hundred percent (100%) of the principal amount of the Notes (or portions thereof) to be so repurchased, plus accrued and unpaid interest, if any (the “Fundamental Change Purchase Price”), to, but excluding, the Fundamental Change Purchase Date; provided, however, that if the Fundamental Change Purchase Date is after a Regular Record Date and on or prior to the related Interest Payment Date, the interest payable on such Interest Payment Date will be paid to the Holder of record on the Regular Record Date and the Fundamental Change Purchase Price shall equal 100% of the principal amount of the Notes tendered for purchase.

 

Notice of Supplemental Indenture

 

Pursuant to Article 4 of the Indenture, the Company is notifying Holders of its 2.50% Convertible Senior Notes due 2027 that, if the Offer and Merger are consummated, upon the consummation, the Company may, to the extent required under the Indenture, enter into a supplemental indenture on or about the date of the closing, which will affect the rights of Holders of the Notes. To the extent required under the Indenture, the supplemental indenture will be entered into by the Company pursuant to Articles 4, 8 and 9 of the Indenture, which permit the Company to enter into indentures supplemental to the Indenture, without the consent of the Holders, for the purpose of complying with certain terms of the Indenture, including, but not limited to, a Make-Whole Fundamental Change. This notice is intended to satisfy the notification requirements pursuant to the Indenture with respect to such supplemental indenture.

 

- 3 -

 

The Conversion Agent

 

Wells Fargo Bank, National Association, the Trustee under the Indenture, is acting as Conversion Agent. Its contact information follows:

 

Wells Fargo Bank, National Association

600 South 4th Street, 6th Floor

MAC N9300-060

Minneapolis, MN 5415

Attn: SEACOR Holdings Inc. Account Manager

Phone: (800) 344-5128

Email: bondholdercommunications@wellsfargo.com

 

Please refer to the Indenture for a more complete description of the convertibility of the Notes, the consideration due upon conversion and when such consideration must be paid by the Company.

 

SEACOR Contact

 

If you have any questions, please contact Bruce Weins, Senior Vice President and Chief Financial Officer (954) 523-2200.

 

 

Very truly yours,

 

     
  SEACOR HOLDINGS INC.  

 

 

 

 

 

 

 

 

 

By:

/s/ Bruce Weins

 

 

Name:

Bruce Weins

 

 

Title:

Senior Vice President and Chief Financial Officer

 

 

 

- 4 -
EX-99.2 3 ex_216842.htm EXHIBIT 99.2 ex_216842.htm
 

Exhibit 99.2

 

 

December 8, 2020

 

CEDE & Co

The Depository Trust Company

(As holder of the global note evidencing

the 3.25% Convertible Senior Notes due

2030 of SEACOR Holdings Inc.)

PO Box 20

Bowling Green Station

New York, NY 10004

 

Wells Fargo, Bank, N.A., as Trustee and Conversion Agent

600 South 4th Street, 6th Floor

MAC N9300-060

Minneapolis, MN 55415

Attn: SEACOR Holdings Inc. Account Manager

 

 

Re:

SEACOR Holdings Inc. 3.25% Convertible Senior Notes due 2030 (CUSIP: 811904AN1) Notice of Make-Whole Fundamental Change

 

Ladies and Gentlemen:

 

Reference is made to that certain Indenture, dated as of May 15, 2018 (the “Indenture”), by and between SEACOR Holdings Inc., a Delaware corporation (the “Company” or “SEACOR”), and Wells Fargo Bank, National Association, as trustee (the “Trustee”), pursuant to which the Company’s 3.25% Convertible Senior Notes due 2030 (the “Notes”) were issued. Capitalized terms used but not defined herein shall have the meanings ascribed to them in the Indenture.

 

On December 4, 2020, the Company entered into an Agreement and Plan of Merger (the “Merger Agreement”) among Safari Parent, Inc., a Delaware corporation (“Parent”), Safari Merger Subsidiary, Inc., a Delaware corporation and a wholly owned subsidiary of Parent (“Merger Sub”), and SEACOR.

 

Pursuant to the terms and subject to the conditions set forth in the Merger Agreement, Merger Sub will commence a tender offer (the “Offer”) to acquire all of the issued and outstanding shares (the “Shares”) of common stock, par value $0.01 per share (the “Common Stock”), of SEACOR, subject to exception related to Common Stock owned by Merger Sub or Parent, if any, or treasury shares owned by SEACOR, at a price of $41.50 per Share (the “Offer Price”), all on the terms and subject to the conditions set forth in the Merger Agreement. The obligation of Merger Sub to accept for purchase and pay for the Shares pursuant to the Offer is subject to customary conditions, including, among others, that at least 66 and 2/3% of the outstanding Shares are tendered in the Offer. Following the consummation of the Offer and subject to the terms and conditions of the Merger Agreement, Merger Sub will merge with and into SEACOR pursuant to Section 251(h) of the Delaware General Corporation Law (the “DGCL”), with SEACOR emerging as the surviving corporation (the “Merger”). Pursuant to the terms of the Merger Agreement, if the Merger is completed, holders of Shares that did not participate in the Offer (excluding any dissenting Shares subject to appraisal rights under the DGCL) will receive cash consideration of $41.50 per share in the Merger, the same consideration payable to holders of Shares that participate in the Offer.

 

Upon consummation of the Merger, the Notes will remain obligations of the Company.

 

Notice of Convertibility of the Notes

 

In accordance with Article 3 of the Indenture, notice is hereby given that a Make-Whole Fundamental Change will occur upon the consummation of the Offer as a result of the acquisition of in excess of 50% of the outstanding Common Stock by Merger Sub. An additional Make-Whole Fundamental Change will occur upon the consummation of the Merger and resulting de-listing of the Common Stock from the New York Stock Exchange. Accordingly, solely for the purpose of providing notice under Section 4.01(b)(iv) of the Indenture, the Company currently anticipates that the date on which the Make-Whole Fundamental Change will become effective will be January 18, 2021 (the “Anticipated Effective Date”). The Company is unable to give any assurances as to the actual date on which the Offer and Merger will be consummated, if at all, because each of the Offer and the Merger remains subject to regulatory approval and other closing conditions, and it is possible the Effective Date will occur prior to January 18, 2021.

 

- 1 -

 

Pursuant to Article 4 of the Indenture, Holders may surrender Notes for conversion at any time during the period that:

 

 

begins on December 9, 2020 the Business Day after the Company has given notice to the Holders of the potential Make-Whole Fundamental Change; and

 

 

ends on, and includes, the Business Day immediately preceding the Fundamental Change Purchase Date, which the Company will publicly announce in a notice sent to each Holder within fifteen (15) calendar days after the Merger Closing (the “Fundamental Change Company Notice”).

 

The Conversion Rate in effect on the date of this notice is 13.1920 shares of Common Stock per $1,000 principal amount of Notes, equal to a Conversion Price of $75.80 per share of Common Stock.

 

Holders should be aware that Article 4 of the Indenture governs the conversion procedure for Notes surrendered for conversion. The Company will use the same Settlement Method for all conversions occurring on the same Conversion Date prior to the Effective Date of the Make-Whole Fundamental Change, but does not have an obligation to use the same Settlement Method with respect to conversions that occur on different Trading Days prior to the Effective Date of the Make-Whole Fundamental Change. The Company will deliver a notice of Settlement Method to Holders converting through the Trustee no later than the Close of Business on the Scheduled Trading Day immediately following the Conversion Date. After the Effective Date of the Make-Whole Fundamental Change all conversions will be settled in cash pursuant to the provisions of Section 4.07(b) of the Indenture.

 

Notice of Make-Whole Fundamental Change

 

If the Offer and Merger are consummated, upon the closing, a Make-Whole Fundamental Change will occur. Notwithstanding the Make-Whole Fundamental Change, no increase to the Conversion Rate applicable to the Notes that are surrendered for conversion after the Effective Date of the Make-Whole Fundamental Change is applicable as the consideration payable in the Offer and Merger is less than $55.13, the lower limit on Conversion Rate adjustments in connection with Make-Whole Fundamental Changes as set forth in Section 4.07(d)(iii) of the Indenture.

 

Please refer to Article 4 of the Indenture for a more complete description of the Notice of Make-Whole Fundamental Change.

 

Conversion Procedures

 

A Holder may convert a portion of a Note, but only if that portion is an integral multiple of $1,000 in principal amount.

 

The Company will pay any documentary, stamp or similar issue or transfer tax or duties, if any, relating to the issuance or delivery of shares of securities upon conversion of a Note. However, a Holder that converts a Note must pay any such tax or duty that is due because such securities or other consideration are issued in a name other than such Holder’s name.

 

The Trustee has informed the Company that, as of the date of this Notice, The Depository Trust Company (“DTC”) is the sole registered Holder of the Notes, all custodians and beneficial holders of the Notes hold the Notes through DTC accounts and there are no certificated Notes in non-global form. To convert a beneficial interest in a Note that is a Global Security, the Holder must, in addition to complying with any other rules and procedures of DTC:

 

(1) cause there to be completed and delivered an appropriate instruction form for conversion, in accordance with the rules and procedures of DTC;

 

(2) cause there to be delivered to the Conversion Agent, through the facilities of DTC, in accordance with the rules and procedures of DTC, the interest in the Global Security to be converted;

 

- 2 -

 

(3) pay the amount of interest, if any, the Holder must pay in accordance with the Indenture (see “Interest Payments” below); and

 

(4) pay any tax or duty if required pursuant to the Indenture.

 

Interest Payments

 

Except as provided in the Notes or in Article 4 of the Indenture, no payment or adjustment will be made for accrued and unpaid interest on a converted Note or for dividends on any Common Stock issued on or prior to conversion. If a Holder surrenders a Note for conversion after 5:00 p.m. New York City time (the “Close of Business”) on a Regular Record Date for the payment of an installment of interest, the Holder must accompany such Note with an amount of cash equal to the amount of interest that will be payable on such Note on the next Interest Payment Date; provided, however, that no payment is necessary if the Company has specified a Fundamental Change Purchase Date that is after a Regular Record Date and on or prior to the third Business Day immediately following the next Interest Payment Date, or for any overdue interest existing, if any, at the time of conversion.

 

The Notes bear interest at an annual rate of 3.25%, payable semi-annually in arrears, computed on the basis of a 360-day year of twelve 30-day months. The interest payment dates for the Notes are May 15 and November 15 of each year, and the corresponding record dates are the immediately preceding May 1 and November 1, respectively.

 

Conversion Date

 

The Conversion Date, as set forth in the Indenture, is the date on which the Holder delivers to the Conversion Agent, by book-entry transfer through the facilities of DTC in accordance with the rules and procedures of DTC, its interest in the Global Note to be converted.

 

If the Offer and Merger Are Consummated, Company Obligation to Offer Repurchase Option to All Holders

 

If the Offer and Merger are consummated, then, in accordance with the Indenture, the Company also will send a Fundamental Change Company Notice. This Fundamental Change Company Notice will set forth the information required by Article 3 of the Indenture, including but not limited to, the date of the effective date of the Fundamental Change, the Fundamental Change Purchase Price and the Fundamental Change Purchase Date, as defined below.

 

Pursuant to Article 3 of the Indenture, each Holder of Notes shall have the right (the “Fundamental Change Purchase Right”), at such Holder’s option, to require SEACOR to repurchase all of such Holder’s Notes (or portions thereof that are integral multiples of $1,000 in principal amount), on a date selected by the Company (the “Fundamental Change Purchase Date”), which shall be not less than twenty (20) Business Days, nor more than thirty-five (35) Business Days, after the date the Fundamental Change Company Notice is sent in accordance with the Indenture. Upon the satisfaction of the requirements of Article 3 of the Indenture, the Holder’s repurchase option shall require the Company to repurchase all of such Holder’s Notes at a price, payable in cash, equal to one hundred percent (100%) of the principal amount of the Notes (or portions thereof) to be so repurchased, plus accrued and unpaid interest, if any (the “Fundamental Change Purchase Price”), to, but excluding, the Fundamental Change Purchase Date; provided, however, that if the Fundamental Change Purchase Date is after a Regular Record Date and on or prior to the related Interest Payment Date, the interest payable on such Interest Payment Date will be paid to the Holder of record on the Regular Record Date and the Fundamental Change Purchase Price shall equal 100% of the principal amount of the Notes tendered for purchase.

 

Notice of Supplemental Indenture

 

Pursuant to Article 4 of the Indenture, the Company is notifying Holders of its 3.25% Convertible Senior Notes due 2030 that, if the Offer and Merger are consummated, upon the consummation, the Company may, to the extent required under the Indenture, enter into a supplemental indenture on or about the date of the closing, which will affect the rights of Holders of the Notes. To the extent required under the Indenture, the supplemental indenture will be entered into by the Company pursuant to Articles 4, 8 and 9 of the Indenture, which permit the Company to enter into indentures supplemental to the Indenture, without the consent of the Holders, for the purpose of complying with certain terms of the Indenture, including, but not limited to, a Make-Whole Fundamental Change. This notice is intended to satisfy the notification requirements pursuant to the Indenture with respect to such supplemental indenture.

 

- 3 -

 

The Conversion Agent

 

Wells Fargo Bank, National Association, the Trustee under the Indenture, is acting as Conversion Agent. Its contact information follows:

 

Wells Fargo Bank, National Association

600 South 4th Street, 6th Floor

MAC N9300-060

Minneapolis, MN 5415

Attn: SEACOR Holdings Inc. Account Manager

Phone: (800) 344-5128

 

Email: bondholdercommunications@wellsfargo.comPlease refer to the Indenture for a more complete description of the convertibility of the Notes, the consideration due upon conversion and when such consideration must be paid by the Company.

 

SEACOR Contact

 

If you have any questions, please contact Bruce Weins, Senior Vice President and Chief Financial Officer (954) 523-2200.

 

 

Very truly yours,

 

     
  SEACOR HOLDINGS INC.  

 

 

 

 

 

 

 

 

 

By:

/s/ Bruce Weins

 

 

Name:

Bruce Weins

 

 

Title:

Senior Vice President and Chief Financial Officer

 

 

 

- 4 -
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