TiVo greenshoe exercised; 4% convertibles lifted to $172.5 million

By Devika Patel

Knoxville, Tenn., March 31 - Underwriters for TiVo Inc.'s 4% five-year convertible senior notes exercised their over-allotment option in full for $22.5 million more of the convertibles, increasing the size of the issue to $172.5 million, the company said in an 8-K filed Thursday with the Securities and Exchange Commission.

The company sold the convertibles at par on March 9 in a Rule 144A offering via bookrunner UBS Investment Bank.

The convertibles have an initial conversion price of $11.16, which equals a conversion ratio of 89.6359. The initial conversion premium was 27.5%.

The notes, which will mature March 15, 2016, are non-callable for life with no puts. There is takeover and dividend protection.

Proceeds are earmarked to fund intellectual property litigation and research and development spending and for general corporate purposes, which may include funding sales and marketing expenses, increasing working capital, making capital expenditures and potentially funding strategic acquisitions.

TiVo is an Alviso, Calif.-based provider of technology and services for digital video recorders.

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