Blackboard greenshoe fully exercised, raising convertibles to $165 million

By Susanna Moon

Chicago, June 20 - Blackboard Inc. said that underwriters fully exercised the over-allotment option of $15 million for 3.25% convertible senior notes due 2027, bringing the total raised to $165 million.

The $150 million issue was priced June 14 with a greenshoe for $15 million. The deal was talked at a coupon of 3% to 3.25% and an initial conversion premium of 60% to 65%.

The notes are convertible at a rate of 15.4202 shares per $1,000 principal amount of notes. The conversion price of $64.85 is a 62% premium to the stock's (Nasdaq: BBBB) closing price of $40.03 June 14.

If the stock exceeds the conversion price at the time of conversion, the conversion rate will be increased by up to 9.5605 more shares.

Credit Suisse Securities LLC.

Blackboard provides enterprise learning software applications and related services and is based in Washington.

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