Shire greenshoe fully exercised, lifts 2.75% convertibles to $1.1 billion

By Jennifer Chiou

New York, May 8 - Shire plc said its $100 million over-allotment option was exercised in full to raise its issue of 2.75% convertible bonds to $1.1 billion.

On May 2, the company priced $1 billion of the seven-year convertibles within talk and with an initial conversion premium of 45%.

As already reported, the convertibles were offered at par and are convertible into Shire's London-listed common stock at an initial conversion price of $33.5879. The bonds were talked at a coupon of 2.625% to 3.125% and an initial conversion premium of 45% to 50%.

Goldman Sachs was the bookrunner of the Regulation S offering.

The convertibles are non-callable for the first five years, after which they may be called subject to a hurdle at 130% of the conversion price. They may be put in the fifth year.

Shire, a Basingstoke, England-based pharmaceutical company, said it will use the proceeds of the deal to repay and cancel part of a $1.3 billion draw down under a $2.3 billion bank loan that was used to pay for its acquisition of New River Pharmaceuticals Inc.

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