Knight Capital greenshoe exercised, lifts 3.5% five-year convertible notes to $375 million

By Marisa Wong

Milwaukee, March 31 - Knight Capital Group, Inc. announced that the underwriters of its recent offering of 3.5% cash convertible senior subordinated notes due 2015 exercised the $50 million over-allotment option in full on March 26, increasing the size of the issue to $375 million.

Knight Capital priced an upsized $325 million of five-year convertibles on March 15 to yield 3.5% with an initial conversion premium of 32.5%.

J.P. Morgan Securities Inc. and Knight Libertas LLC are the bookrunners.

Concurrently with the greenshoe exercise, the company upsized its privately negotiated cash convertible note hedge and warrant transactions.

Proceeds of the offering will be used to repay $140 million of a senior secured term loan facility and senior secured revolving facility, to pay for the hedge and warrant transactions and for general corporate purposes.

Based in Jersey City, N.J., Knight Capital Group is a financial services firm.

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