Vantage Drilling's (NYSE:VTG) Risk Lowered on Rejecton of F3 Capital Note Conversion

Risk for Vantage Drilling (NYSE:VTG) was lowered on the rejection of shareholders of the conversion of the F3 Capital Note to equity, although EPS estimates for 2011 and 2012 remain unchanged by FBR.

FBR says, "We are tweaking our model to account for Vantage's recent fleet status updates. Overall our 2011 and 2012 EPS estimates remain unchanged at $0.05 and $0.10 respectively. We reiterate our rating as the jackup market improvement continues to play out. The stock is also de-risked following the recent shareholder vote against conversion of the F3 Capital Note to equity, and as the sale of the Seadragon rigs lowers the risk of future shareholder dilution."

FBR Capital maintains an "Outperform" rating on Vantage Drilling, which is trading at $2.05, up 0.02, or 0.98 percent, as of 1:41 PM EST. FBR has a price target of $2.40 on them.