Gap says underwriters exercise greenshoe, raising convertibles to $1.38 billion

New York, March 7 - Gap Inc. said the underwriters of its recent offering of 5.75% convertible notes due March 15, 2009 exercised the $180 million overallotment option, raising the total size to $1.38 billion.

The San Francisco retailer originally sold $1.2 billion of the convertibles after the market close on Feb. 27 at a yield of 5.75% and an initial conversion premium of 30%.

Gap upsized the offering at pricing from an announced size of $1 billion.

Lead managers for the Rule 144A sale were Banc of America Securities, JPMorgan and Salomon Smith Barney.

Proceeds will be used for general corporate purposes.

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