Group 1 Automotive $15 million greenshoe exercised for 3% convertibles

By Marisa Wong

Milwaukee, April 1 - Group 1 Automotive, Inc. announced that the underwriters of its recent offering of convertible senior notes due 2020 exercised the $15 million over-allotment option in full, increasing the size of the offering to $115 million. The sale of the additional notes closed on Thursday.

The company priced $100 million of 10-year convertible notes on March 16 to yield 3% with an initial conversion premium of 22.5%. That part of the deal closed on March 22.

J.P. Morgan Securities Inc. and Bank of America Merrill Lynch were joint bookrunners for the Rule 144A offering.

Net proceeds of the offering, totaling $111.3 million, will be used to redeem the company's existing 8.25% senior subordinated notes, to pay its $16.7 million convertible hedge transactions and for general corporate purposes.

Houston-based Group 1 is an automotive products and services retailer.

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