Maxtor says greenshoe exercised, raising convertibles to $230 million

New York, May 7 - Maxtor Corp. said underwriters of its recent sale of 6.80% senior convertible notes due 2010 exercised the $30 million over-allotment option in full, raising the size of the deal to $230 million.

The Milpitas, Calif. disk drive maker originally sold $200 million of the securities after the market close on May 1 to yield 6.8% with an initial conversion premium of 125%.

Bookrunner for the Rule 144A offering was Bank of America.

Maxtor also said it used $44.9 million of the proceeds to buy back 8,245,738 shares of common stock from an affiliate of one of the underwriters at $5.45 per share.

Remaining proceeds will be used for repayment of indebtedness, investments, acquisitions, general corporate purposes and working capital.

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