Komag greenshoe exercised, raising convertibles to $80.5 million

New York, Jan. 28 - Komag Inc. said underwriters of its recent offering of convertible subordinated notes due 2024 exercised the $10.5 million over-allotment option in full, raising the size of the deal to $80.5 million.

The San Jose, Calif., maker of thin-film disks originally sold $70 million of the securities after the market closed on Jan. 22 to yield 2.0% with a 32% initial conversion premium.

Bear Stearns & Co. was bookrunner for the registered deal.

Komag will use proceeds from the convertibles along with money raised from a sale of 3.525 million shares at $20 per share to redeem its $115.2 million senior secured notes due 2007 and for general corporate purposes.

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