RightNow greenshoe fully exercised, lifts convertibles to $175 million

By Devika Patel

Knoxville, Tenn., Nov. 22 - Underwriters for RightNow Technologies Inc.'s issue of 2.5% convertible senior notes due Nov. 15, 2030 exercised their over-allotment option in full for $25 million more of the convertibles, increasing the size of the issue to $175 million, the company said in an 8-K filed Monday with the Securities and Exchange Commission.

As previously reported, the company sold the convertibles at par on Nov. 16 in a Rule 144A offering via bookrunner Credit Suisse Securities and co-lead manager JMP Securities.

The convertibles have a conversion premium of 30% and an initial conversion price of $31.89, which equals a conversion ratio of 31.36.

The notes will be non-callable until Nov. 20, 2015. There are investor puts in years five, 10 and 15.

Proceeds are earmarked for general corporate purposes, which may include financing potential acquisitions and strategic transactions, stock repurchases and working capital. A portion of the proceeds may be used for stock repurchases under the company's $25 million stock buyback program.

RightNow is a software company based in Bozeman, Mont.

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