Electronics For Imaging greenshoe lifts convertibles to $345 million

By Susanna Moon

Chicago, Sept. 9 – Electronics For Imaging Inc.’s underwriters fully exercised the $45 million over-allotment option on its five-year convertible senior notes, bringing the total deal size to $345 million.

As previously reported, the company priced $300 million of the convertibles after the market close Sept. 3 at par to yield 0.75% with an initial conversion premium of 22.5%.

The company entered into convertible note hedge transactions on Sept. 3 and Sept. 4 for call options giving the company the right to purchase about 6.5 million shares with a strike price of about $52.72, which is a 17.76% premium to the company’s closing price on Sept. 2.

Separately, the company also entered into privately negotiated warrant transactions for about 6.5 million shares with a strike price of $68.864 per share, which is a 60% premium to the company’s closing price on Sept. 3.

Pricing of the Rule 144A deal came at the midpoint of 0.5% to 1% coupon talk and through the cheap end of 25% to 30% premium talk.

Morgan Stanley & Co. LLC and Goldman Sachs & Co. were the joint bookrunners of the deal.

The notes are non-callable.

A portion of the proceeds will be used to pay the net cost of the convertible note hedge and warrant transactions.

Proceeds will also be used to repurchase up to $10 million shares of common stock. Remaining proceeds will be used for general corporate purposes, including additional stock repurchases and potential acquisitions and strategic transactions.

The Fremont, Calif.-based company is a printing devices company.

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