Maverick Tube Closes Private Offering



Maverick Tube (NYSE: MVK) has closed the private offering of its $220 million aggregate principal amount of 1.875% convertible senior subordinated notes due 2025. Morgan Stanley served as initial purchaser of the convertible senior subordinated notes.

Maverick has also committed approximately $164.2 million of the net proceeds of the offering to repurchase approximately 4.9 million shares of Maverick common stock in connection with the offering of the notes and in open market purchases through November 15. Maverick also has used approximately $25.7 million of the net proceeds of the offering to enter into convertible note hedge and warrant transactions. These transactions are intended to reduce the potential dilution upon future conversion of the notes by providing Maverick with the option, subject to certain exceptions, to acquire shares which offset the delivery of newly issued shares upon settlement of conversions of the notes. This has the economic effect to Maverick of increasing the conversion price of the notes to $52.00 per share.

Maverick intends to use the remainder of the net proceeds of the offering to repurchase additional shares of Maverick common stock in the open market from time to time.

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