Shanda greenshoe fully exercised, lifts 2% three-year convertibles to $175 million

By Devika Patel

Knoxville, Tenn., Sept. 16 - Underwriters for Shanda Interactive Entertainment Ltd.'s 2% three-year convertible senior notes exercised their over-allotment option in full for $20 million more of the convertibles, increasing the size of the issue to $175 million, the company said in press release.

As previously reported, the company sold the convertibles at par on Sept. 9, after the close, in a Rule 144A offering via bookrunner Goldman Sachs & Co.

The bonds have an initial conversion premium of 25.31% and a conversion price of $35.00, which equals a conversion ratio of 28.5714.

The convertibles are non-callable for life. They will be convertible for a combination of cash and shares, which may be in the form of the company's American Depositary Shares at an initial conversion rate of 28.5714 shares per bond.

Holders of the notes may require the company to repurchase all or a portion of the notes upon certain fundamental changes.

Proceeds from the notes, together with cash in hand, will be used to buy back the company's $175 million of American Depositary Shares under an accelerated share repurchase program.

Shanda is a Shanghai-based interactive entertainment media company.

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