Safeguard Scientifics greenshoe lifts convertibles to $55 million

By Rebecca Melvin

New York, Nov. 20 - The underwriter for Safeguard Scientifics Inc.'s issue of 5.25% 5.5-year convertible senior debentures exercised its over-allotment option for $4.5 million more of the convertibles, increasing the issue size to $55 million, according to a regulatory filing.

The initial purchaser of the bonds was Stifel Nicolaus & Co. Inc.

As previously reported, Safeguard sold the convertibles at par on Nov. 14 under Rule 144A. The base deal was for $50.5 million with a $4.5 million greenshoe.

The debentures are non-callable until Nov. 15, 2016 and have contingent conversion if shares are at least 130% of conversion for 20 out of 30 days until Nov. 15, 2017, after which they are freely convertible.

Proceeds of the Rule 144A offering will be used to repurchase all or some of the company's outstanding 10.125% convertible senior debentures due 2014 and for general corporate purposes.

Wayne, Pa.-based Safeguard is an information technology firm focused in the health care and life sciences industries.

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