e424b7
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PROSPECTUS SUPPLEMENT No. 1
(To Prospectus Dated May 1, 2007)
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Filed Pursuant to Rule 424(b)(7)
Registration No. 333-142532 |
$400,000,000
1.50% SENIOR EXCHANGEABLE NOTES DUE 2026
of
SESI, L.L.C.
Unconditionally Guaranteed by Superior Energy Services, Inc.
The following supplements the prospectus dated May 1, 2007 (the prospectus) relating to the
offering for resale of $400,000,000 aggregate principal amount of 1.50% Senior Exchangeable Notes
Due 2026 of SESI, L.L.C. (SESI) we sold in a private placement on December 12, 2006 and the
common shares of SESIs parent company, Superior Energy Services, Inc. (Superior Energy),
issuable upon exchange or repurchase of the notes.
This prospectus supplement is not complete without, and may not be delivered or utilized
except in combination with, the prospectus. This prospectus supplement is incorporated by
reference into the prospectus and should be read in conjunction with the prospectus.
Superior Energys common stock is listed on the New York Stock Exchange under the symbol
SPN. The last reported sale price of Superior Energys common stock on the New York Stock
Exchange on May 30, 2007 was $40.10 per share.
Neither the Securities and Exchange Commission nor any state securities commission has
approved or disapproved of these securities or passed upon the accuracy of this prospectus
supplement. Any representation to the contrary is a criminal offense.
See Risk Factors beginning on page 6 of the prospectus for a discussion of certain risks
that you should consider in connection with an investment in the securities offered by this
prospectus supplement.
The date of this prospectus supplement is May 31, 2007
SELLING SECURITY HOLDERS
The information set forth in the following tables supplements the information appearing under
the heading Selling Security Holders in the prospectus. None of the selling security holders
named below has, within the past three years, held any position or office with us or any of our
predecessors or affiliates, or had any other material relationship with us or any of our
predecessors or affiliates, except as noted below. To our knowledge, no selling security holder
named below who is a registered broker-dealer or an affiliate of a registered broker-dealer
received any securities as underwriting compensation.
The following tables are based solely on the information provided to us by the selling
security holders on or before May 30, 2007. Additional selling security holders may choose to sell
securities from time to time upon notice to us.
The information appearing under the heading Selling Security Holders in the prospectus is
hereby supplemented to reflect the additional selling security holders identified below and to
reflect the notes, and common stock issuable upon conversion of the notes, for such selling
security holders.
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No. of |
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Shares of |
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Principal |
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Principal |
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No. of Shares |
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Superior |
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Amount of |
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Amount of |
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No. of Shares of |
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of Superior |
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Energy |
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Notes |
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% of Notes |
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Notes Being |
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Superior Energy |
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Energy Common |
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Common Stock |
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Beneficially |
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Beneficially |
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Offered |
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Common Stock |
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Stock Being |
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Held After |
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Name |
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Owned ($) |
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Owned |
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($)(1) |
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Owned (2)(3) |
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Offered (1)(3) |
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Offering (1) |
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Credit Suisse
Securities LLC,
USA(4) |
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10,000,000 |
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2.50 |
% |
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10,000,000 |
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219,414 |
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219,414 |
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0 |
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DBAG London(5) |
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32,429,980 |
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8.11 |
% |
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32,429,980 |
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711,559 |
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711,559 |
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0 |
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JP Morgan
Securities Inc.(6) |
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3,505,000 |
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* |
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3,505,000 |
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76,904 |
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76,904 |
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0 |
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Kamunting Street
Master Fund,
Ltd.(7) |
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14,500,000 |
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3.63 |
% |
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14,500,000 |
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318,150 |
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318,150 |
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0 |
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Radcliffe SPC, Ltd.
for and on behalf
of the Class A
Segregated
Portfolio(8) |
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15,000,000 |
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3.75 |
% |
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15,000,000 |
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329,121 |
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329,121 |
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0 |
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The information appearing under the heading Selling Security Holders in the prospectus
is hereby supplemented to reflect updated information with respect to the selling security holders
identified below and to reflect the notes, and common stock issuable upon conversion of the notes,
for such selling security holders.
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No. of |
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Shares of |
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Principal |
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Principal |
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No. of Shares |
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Superior |
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Amount of |
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Amount of |
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No. of Shares of |
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of Superior |
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Energy |
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Notes |
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% of Notes |
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Notes Being |
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Superior Energy |
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Energy Common |
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Common Stock |
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Beneficially |
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Beneficially |
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Offered |
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Common Stock |
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Stock Being |
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Held After |
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Name |
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Owned ($) |
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Owned |
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($)(1) |
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Owned (2)(3) |
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Offered (1)(3) |
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Offering (1) |
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CALAMOS Global
Opportunities Fund
LP(9) |
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330,000 |
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* |
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330,000 |
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7,240 |
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7,240 |
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0 |
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CALAMOS Growth &
Income Fund-
CALAMOS Investment
Trust(10) |
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45,000,000 |
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11.25 |
% |
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45,000,000 |
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987,363 |
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987,363 |
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0 |
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CALAMOS Growth &
Income Portfolio-
CALAMOS Advisors
Trust(11) |
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300,000 |
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* |
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300,000 |
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6,582 |
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6,582 |
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0 |
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Froley Revy
Alternative
Strategies(12) |
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1,000,000 |
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* |
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500,000 |
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10,970 |
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10,970 |
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0 |
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GM (General Motors
Co.) |
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612,000 |
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* |
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612,000 |
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13,428 |
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13,428 |
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0 |
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Polygon Global
Opportunities
Master Fund(13) |
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30,000,000 |
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7.50 |
% |
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30,000,000 |
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658,242 |
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658,242 |
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0 |
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(1) Because the selling security holder may sell pursuant to this prospectus supplement all or a
portion of the offered notes, and common stock issuable upon exchange of the notes, we cannot know
or estimate the number or percentage of notes and common stock that the selling security holder
will hold upon the termination of any particular offering. The information presented assumes that
the selling security holder will sell all of the notes or common stock issued upon exchange of the
notes.
(2) In calculating the number of shares of Superior Energy common stock owned, we treated as
outstanding the number of Superior Energy common shares issuable upon exchange of all of that
particular holders notes in accordance with the applicable referenced exchange rates.
(3) Includes Superior Energy common shares issuable upon exchange of the notes based on the
initial exchange rate of 21.9414 common shares per $1,000 principal amount of the notes. However,
the exchange rate is subject to adjustment as described under the heading Description of the Notes
Exchange Rate Adjustments in the prospectus. As a result, the number of common shares issuable
upon exchange of the notes may increase or decrease in the future.
(4) Credit Suisse Securities LLC, USA has identified itself as a broker-dealer registered pursuant
to Section 15 of the Exchange Act.
(5) DBAG London has identified itself as an affiliate of Deutsche Bank Securities London
Branch, a broker-dealer registered pursuant to Section 15 of the Exchange Act. Patrick Corrigan is
controlling shareholder or other interest holder.
(6) JP Morgan Securities Inc. has identified itself as a broker-dealer registered pursuant to
Section 15 of the Exchange Act. It acquired the notes as transaction-based compensation.
(7) Kamunting Street Master Fund, Ltd. is an investment or hedge fund and Allan Teh, General
Partner of Kamunting Street Capital, LP as Advisor for Kamunting Street Master Fund, Ltd. has or
shares voting power or investment power over the securities.
(8) Pursuant to an investment management agreement, RG Capital Management, L.P. (RG Capital)
serves as the investment manager of Radcliffe SPC, Ltd.s Class A Segregated Portfolio. RGC
Management Company, LLC (Management) is the general partner of RG Capital. Steve Katznelson and
Gerald Stahlecker serve as the managing members of Management. Each of RG Capital, Management and
Messrs. Katznelson and Stahlecker disclaims beneficial ownership of the securities owned by
Radcliffe SPC, Ltd. for an on behalf of the Class A Segregated Portfolio.
(9) CALAMOS Global Opportunities Fund LP is an investment or hedge fund and Nick Calamos CIO and
Calamos Advisors LLC have or share voting power or investment power over the securities.
(10) CALAMOS Growth & Income Fund CALAMOS Investment Trust is an investment or hedge fund and
Nick Calamos CIO and Calamos Advisors LLC have or share voting power or investment power over the
securities.
(11) CALAMOS Growth & Income Portfolio CALAMOS Advisors Trust is an investment or hedge fund
and Nick Calamos CIO and Calamos Advisors LLC have or share voting power or investment power over
the securities.
(12) Froley Revy Alternative Strategies is a corporation that is not publicly held and the
controlling shareholder is Ann Houlihan, 10900 Wilshire Blvd. Suite 900, Los Angeles, CA 90024.
(13) Polygon Investment Partners LLP and Polygon Investment Partners LP (the Investment
Managers), Polygon Investments Ltd. (the Manager), Alexander E. Jackson, Reade E. Griffith and
Patrick G. G. Dear share voting and dispositive power of the securities held by Polygon Global
Opportunities Master Fund. The Investment Managers, the Manager, Alexander E. Jackson, Reade E.
Griffith and Patrick G. G. Dear disclaim beneficial ownership of the securities held by Polygon
Global Opportunities Master Fund.
PLAN OF DISTRIBUTION
The following supplements the information appearing under the heading Plan of Distribution
in the prospectus. The additional selling security holders and any underwriters, broker-dealers or
agents who participate in the distribution of the securities offered by the prospectus, as
supplemented hereby, may be underwriters within the meaning of the Securities Act. To the extent
any of the selling security holders are broker-dealers, they are, under the interpretation of the
Securities and Exchange Commission, underwriters within the meaning of the Securities Act. Each
of the following additional selling security holders has represented to us that it is a
broker-dealer or an affiliate of a broker-dealer: Credit Suisse Securities LLC, USA, DBAG London
and JP Morgan Securities Inc. Any profits on the sale of the notes and the common stock issuable
upon the exchange of the notes by such selling security holders and any discounts, commissions or
concessions received by any such broker-dealers or agents may be deemed to be underwriting
discounts and underwriters within the meaning of the Securities Act will be subject to prospectus
delivery requirements of the Securities Act. If the additional selling security holders are deemed
to be underwriters, such selling security holders may be subject to certain statutory liabilities
of the Securities Act and the Exchange Act.