CP Ships greenshoe exercised, raising convertibles to $200 million

New York, Feb. 24 - CP Ships Ltd. said the underwriters of its recent offering of 4% convertible senior subordinated notes due 2024 exercised the over-allotment option in full, raising the size of the deal to $200 million.

The London-based shipping company originally sold $175 million of the securities before the market opened on Feb. 19 to yield of 4.0% with a 35% initial conversion premium.

Joint lead managers for the Rule 144A offering were Morgan Stanley & Co. and RBC Capital Markets.

CP Ships will use proceeds to repay borrowings under two secured revolving credit facilities. The money may be reborrowed for general corporate purposes.

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