Cal Dive Issues Remaining Preferred Stock From 2003 Deal

Cal Dive International, Inc. (Nasdaq: CDIS) announced that a preferred stock holder, a private investment firm, has exercised its right to purchase an additional $30 million of preferred stock.

In accordance with a January 2003 agreement, the preferred stock is convertible into 982,029 shares of Cal Dive common stock at $30.549 per share and will have a minimum annual dividend rate of 4%, subject to adjustment, payable in cash or common shares at Cal Dive's option. As with the preferred shares issued in 2003, the holder may redeem the value of its latest investment after the second anniversary of the original issuance. The company has the option of settling any redemption in cash for the value of the common stock that would have been issued.

A. Wade Pursell, Chief Financial Officer of Cal Dive, stated, "Our corporate goals for this year include mature property and PUD acquisitions, as well as negotiation of a production facility transaction similar to Marco Polo. While we are comfortable with our existing debt levels, this preferred stock issuance gives us additional financial flexibility to execute our business plan. Depending on the timing of acquisition opportunities, we may use the proceeds to reduce debt levels further or potentially buy back common shares."

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