Grubb & Ellis greenshoe partially exercised, lifts 7.95% five-year convertibles to $31.5 million

By Devika Patel

Knoxville, Tenn., June 24 - Underwriters for Grubb & Ellis Co.'s 7.95% convertible senior notes due 2015 exercised their over-allotment option in part for $1.5 million more of the convertibles, increasing the size of the issue to $31.5 million, the company said in an 8-K filed Thursday with the Securities and Exchange Commission.

As previously reported, the company sold the convertibles at par on May 3 in a Rule 144A offering via underwriter JMP Securities LLC.

The convertibles have an initial conversion premium of 17.5% and a conversion price of about $2.24, which equals a conversion ratio of 445.583.

The issue included a $4.5 million greenshoe.

The company may redeem the notes at par plus interest after May 6, 2013.

Proceeds will be used for growth initiatives, short-term working capital and general corporate purposes.

Grubb & Ellis is a Santa Ana, Calif.-based real estate services and investment firm.

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