ServiceSource greenshoe exercise lifts 1.5% convertibles to $150 million

By Tali David

Minneapolis, Aug. 9 - Underwriters for ServiceSource International Inc.'s 1.5% convertible senior notes due 2018 offering fully exercised their over-allotment option, adding an additional $20 million, according to a press release.

The company priced an upsized $130 million of the convertibles with an initial conversion premium of 35% on Aug. 8. The total issue size is now $150 million.

As previously reported, the company entered into privately negotiated convertible note hedge transactions that raised the effective conversion price from the company's perspective to $21.02, a 75% premium.

A portion of the proceeds will cover the costs of those transactions. Any remaining funds will be used for general corporate purposes, including working capital, capital expenditures, potential acquisitions and strategic transactions.

ServiceSource is a San Francisco-based provider of recurring revenue management contracts maintenance, support and subscription for technology and technology-enabled health-care and life sciences companies.

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