Subsea 7 Launches Private Placement

25 September 2009

Subsea 7 Inc hasannounced that it proposes to offer a private placement ofUS$200 million of convertible bonds due 2014. In addition, Subsea 7 has granted ABG Sundal Collier, an option to purchase up to an additional US$25 million principal amount of Bonds.

The proceeds of the issue will be used for general corporate purposes and for refinancing convertible debt. The senior unsecured Bonds will be convertible into ordinary shares of the company and are expected to have an annual coupon in the range of 3.50-4.00 per cent payable semi-annually in arrears and a conversion premium of 32.5-37.5 per cent over the volume weighted average price of the company's shares on the Oslo Stock Exchange (converted into US$) between launch and pricing.

The convertible Bonds will be issued and redeemed at 100 per cent of their principal amount and will, unless previously redeemed, converted or purchased and cancelled, mature in October 2014.

The Bonds are expected to be settled on or around October 13 October, 2009. The bonds will be unlisted, however Subsea 7 may decide to list the bonds on an exchange at a later stage.

ABG Sundal Collier is acting as sole bookrunner.