General Mills greenshoe fully exercised, lifts 30-year convertibles to $1.15 billion

By Jennifer Chiou

New York, April 10 - General Mills Inc. said that its $150 million over-allotment option was fully exercised, augmenting its issue of floating-rate convertible senior notes to $1.15 billion.

Before the open on April 5, the company priced $1 billion of the 30-year convertibles cheaper than talk to yield one-month Libor minus 7 basis points with an initial conversion premium of 69.6% and a reoffered price of 99.72.

As already reported, the notes were reoffered at variable prices, but most of them were sold around 99.72. The notes were talked at the same coupon and conversion premium with a reoffered price of 99.75.

General Mills said that net proceeds are expected to be $1.1498 billion.

The notes are expected to settle on April 11.

Morgan Stanley was the bookrunner of the Rule 144A offering.

The convertibles are non-callable for the first year and may be put in years one, two, five, 10, 15, 20 and 25.

The convertibles have dividend and takeover protection. There is net-share settlement.

General Mills, a Minneapolis-based producer of packaged consumer foods, said the proceeds of the deal will be used to partially repay its outstanding U.S. commercial paper.

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