Men's Wearhouse greenshoe exercised, raising convertibles to $130 million

New York, Oct. 21 - Men's Wearhouse said the underwriters of its recent offering of convertible senior notes due 2023 exercised the $20 million over-allotment option in full, raising the size of the deal to $130 million.

The Houston men's apparel retailer originally sold $110 million of the securities after the market closed on Oct. 15 to yield 3.125% with a 42% initial conversion premium.

Joint bookrunners for the Rule 144A deal were Bear Stearns & Co. and Wachovia Securities.

Men's Wearhouse used $42.3 million of proceeds to purchase shares from buyers of the convertible notes. Another $43.2 million will be used to repay its existing Canadian term loan. Remaining proceeds will be used for general corporate purposes, which may include additional stock repurchases.

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