Kaydon says greenshoe exercised, raising convertibles to $200 million

New York, June 2 - Kaydon Corp. said underwriters of its recent sale of 4% contingent convertible senior subordinated notes due 2023 exercised the $30 million over-allotment option in full, raising the size of the deal to $170 million.

The Ann Arbor, Mich. company originally sold $170 million of the convertibles to yield 4% with a 34% initial conversion premium after the market close on May 19.

Deutsche Bank Securities Inc. was underwriter for the Rule 144A deal.

Kaydon said proceeds would be used to repay about $72 million of revolving credit debt, make a $3 million payment to cash collateralize outstanding bank letters of credit, repurchase stock - including shares sold short by convertible buyers - and for future acquisitions and general corporate purposes.

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