Digital River greenshoe exercised, lifts convertibles to $345 million

By Devika Patel

Knoxville, Tenn., Nov. 1 - Underwriters for Digital River Inc.'s 2% convertible senior notes due Nov. 1, 2030 exercised their over-allotment option in full for $45 million more of the convertibles, increasing the size of the issue to $345 million, the company said in an 8-K filed Monday with the Securities and Exchange Commission.

As previously reported, the company sold the convertibles at par on Oct. 26 in a Rule 144A offering via joint bookrunners Merrill Lynch, Pierce, Fenner & Smith Inc. and Morgan Stanley & Co. Inc.

The convertibles have a conversion premium of 32.5% and an initial conversion price of $49.13, which equals a conversion ratio of 20.3537.

According to market sources, the notes will be non-callable for five years and have put options in years five, 10 and 15.

The company used some of the proceeds to repurchase 943,881 common shares at an average price of $37.08, and the remainder of the proceeds will be used for general corporate and strategic purposes.

Minneapolis-based Digital River provides e-commerce solutions.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.