Dick's Sporting Goods greenshoe exercised, raising convertibles to $172.5 million

New York, Feb. 18 - Dick's Sporting Goods Inc. said the underwriters of its recent offering of senior cash-to-zero convertible notes due 2024 exercised the $17.5 million over-allotment option, raising the size of the deal to $172.5 million proceeds.

The Pittsburgh sporting goods retailer originally sold $155 million proceeds of the securities for a yield to maturity of 2.375% with a 40% initial conversion premium.

The offering was upsized at pricing from an announced size of $125 million.

Merrill Lynch & Co. was bookrunner of the Rule 144A deal.

Dick's Sporting Goods said it used part of the proceeds for a convertible bond hedge and a separate warrant transaction. Together these transactions raised the effective conversion premium to $112.32 per share from $78.62.

Remaining proceeds will be used for general corporate purposes, which may include investing in new stores, accelerating store growth and acquisitions of complementary companies or businesses, the company said.

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