Helix prices secondary offering of 20M shares

Helix Energy Solutions said Friday its secondary public offering of 20 million shares of its majority owned subsidiary, Cal Dive International Inc., is priced at $8.50 each.

The oil services provider also agreed to let Cal Dive repurchase an additional 1.6 million Cal Dive shares for $14 million, or $8.50 each, the same price as the public offering. Cal Dive plans to retire all repurchased shares.

The offering and stock repurchase represents about 23 percent of Cal Dive's outstanding shares and will reduce Helix's ownership interest in Cal Dive to 28 percent from roughly 51 percent.

Helix has also granted underwriters an option to buy an additional 3 million share to cover over-allotments.

Credit Suisse Securities LLC and Merrill Lynch are acting as joint book-running managers for the offering, while Raymond James & Associates and Johnson Rice & Co. are acting as co-managers.

Cal Dive is a contractor providing services to offshore energy companies, including manned diving, platform installation and salvage, and pipe burial.

Shares of Cal Dive fell 61 cents, or 6.8 percent, to $8.31 per share in midday trading. Helix declined 9 cents to $11.31.