THQ greenshoe fully exercised, lifts 5% convertibles to $100 million

By Devika Patel

Knoxville, Tenn., Aug. 4 - Underwriters for THQ Inc.'s offering of 5% five-year convertible senior notes exercised their over-allotment option in full for $10 million more of the convertibles, increasing the size of the issue to $100 million, the company said in an 8-K filed Tuesday with the Securities and Exchange Commission.

As previously reported, the company sold the notes at par on July 29 in a Rule 144A deal via bookrunner Morgan Stanley & Co. Inc.

The notes have an initial conversion premium of 25% and a conversion ratio of 117.4743, which equals a conversion price of $8.51.

The convertibles are non-callable for three years, then provisionally callable subject to a price hurdle of 150%.

THQ intends to use proceeds for general corporate purposes.

THQ is a developer and publisher of video games based in Agoura Hills, Calif.

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