Kroll greenshoe exercised, raising convertibles to $175 million

New York, Dec. 19 - Kroll Inc. said the underwriters of its recent offering of convertible subordinated notes due 2014 exercised the $25 million over-allotment option in full, raising the size of the deal to $175 million.

The New York risk consulting company originally priced $150 million of the securities after the market closed on Dec. 17 to yield 1.75% with a 37.5% initial conversion premium.

Bookrunner for the Rule 144A deal was Goldman Sachs & Co.

Kroll will use proceeds to buy back 2 million shares of common stock simultaneously with the offering plus another 780,000 shares from time to time. The total number of shares involved equals the number of shares issuable upon conversion of Kroll's outstanding 6% senior subordinated convertible notes due 2006.

Remaining proceeds will be used for general corporate purposes.

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