MF Global greenshoe exercised, lifts 9% convertibles to $210 million

By Devika Patel

Knoxville, Tenn., Aug. 7 - Underwriters for MF Global Ltd.'s 9% convertible senior notes due 2038 exercised their over-allotment option for $60 million more of the convertibles, increasing the size of the issue to $210 million, the company said in a news release.

As previously reported, the company sold the notes at par on June 19 via joint bookrunners Banc of America Securities LLC, Morgan Stanley & Co. Inc., Citigroup and J.P. Morgan Securities Inc.

The notes have an initial conversion premium of 22.22% and a conversion price of $10.45.

The notes are non-callable for five years and have puts in years five, 10, 15, 20 and 25.

Proceeds will be used to repay an outstanding bridge loan due in December.

Hamilton, Bermuda-based MF Global is a broker of exchange-listed futures and options.

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