Global Eagle greenshoe increases 2.75% convertibles to $82.5 million

By Angela McDaniels

Tacoma, Wash., Feb. 19 – The underwriters for Global Eagle Entertainment Inc.’s 2.75% convertible senior notes due 2035 exercised their $7.5 million over-allotment option in full, increasing the size of the issue to $82.5 million.

The issue settled Wednesday, according to an 8-K filing with the Securities and Exchange Commission.

As previously reported, the company priced $75 million of the convertibles at par with an initial conversion premium of 40% on Feb. 12.

Pricing of the Rule 144A deal came at the midpoint of 2.5% to 3% coupon talk and beyond the rich end of 30% to 35% premium talk.

Piper Jaffray & Co. and Macquarie Capital (USA) Inc. were joint bookrunners.

Concurrently with the note offering, certain stockholders sold 3.79 million shares of common stock at $13.25 each in an underwritten public offering.

The convertibles are non-callable for four years and then are provisionally callable between years four and seven if shares exceed 130% of the conversion price for 20 out of 30 trading days. After year seven, the convertibles are freely callable. There are investor puts at years seven, 10 and 15.

Proceeds will be used for working capital and general corporate purposes, including possible acquisitions, ongoing and future capital investments in new product development and technologies and costs associated with expanding the company’s customer base.

Westlake Village, Calif.-based Global Eagle provides in-flight video content, e-commerce and information services for airlines.

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