Goodrich Petroleum greenshoe exercised, raising 20-year convertibles to $175 million

By Lisa Kerner

Charlotte, N.C., Dec. 8 - Goodrich Petroleum Corp. said its underwriters exercised a $50 million over-allotment option, raising the sale of 20-year convertible senior notes to $175 million, according to a news release.

The company originally priced $125 million of the notes on Dec. 1 at a coupon of 3.25% and an initial conversion premium of 50%.

Bear Stearns and Deutsche Bank were the bookrunners of the Rule 144A deal.

The notes are non-callable for the first five years, with a put in years five, 10 and 15.

There is a contingent conversion threshold at 135%.

Goodrich said there is a concurrent registered offering of up to 3.3 million shares of common stock that will be used for a 20-year share lending agreement with Bear Stearns.

The Houston-based oil and gas exploration company plans to use the proceeds to repay a $50 million term loan and to pay part of an outstanding senior debt.

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