Core Labs $50 million greenshoe exercised, ups exchangeables to $300 million

By Laura Lutz

Des Moines, Nov. 20 - Core Laboratories NV announced that the $50 million greenshoe was fully exercised in its previously announced offering of senior exchangeable notes due 2011, bringing the total deal size to $300 million.

The 0.25% notes carry an initial exchange premium of 30% and a reoffered price of 99.75.

There is a contingent exchange hurdle at 130% of the conversion price.

The 0.25% notes priced on Nov. 1 at a reoffered price of 99.75and an initial exchange premium of 30%.

The notes are issued by Core's subsidiary, Core Laboratories LP, but fully guaranteed by the parent. They will be exchangeable into Core's common stock with a conversion price of $94.76.

Banc of America and Lehman Brothers were the bookrunners of the Rule 144A offering.

The notes are non-callable and non-putable.

Proceeds of the initial offering will be used to fund convertible note hedge and warrant transactions. About $101 million will be used to repay a revolving loan and another $98 million will be used to buy back Core common stock. Proceeds from the greenshoe will be used for general corporate purposes.

Settlement of the initial $250 million of notes was on Nov. 6. Settlement of the additional notes was on Nov. 17.

Core is an Amsterdam-based provider of oil reservoir management services.

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