TTM greenshoe fully exercised, lifts 3.25% seven-year convertibles to $175 million

By Devika Patel

Knoxville, Tenn., May 22 - Underwriters for TTM Technologies Inc.'s 3.25% seven-year convertible senior notes exercised their over-allotment option in full for $20 million more of the notes, increasing the size of the issue to $175 million, the company said in a press release.

As previously reported, TTM priced the notes at par in an off-the-shelf transaction on May 8, through joint bookrunners J.P. Morgan Securities Inc. and UBS Investment Bank.

The deal priced AT par to yield 3.25% with an initial conversion premium of 27.5%.

There are no calls or puts.

Proceeds are expected to be used to repay a term loan under the company's senior credit facility in full and for general corporate purposes, including potential acquisitions.

TTM also expects to enter into convertible note hedge transactions in connection with the offering aimed at reducing potential dilution of the stock upon conversion of the notes.

TTM will also enter into warrant transactions concurrently with the offering, which could result in additional proceeds to TTM. A portion of net proceeds will be used to pay the cost of the convertible note hedge transactions. This cost will be partially offset by proceeds that TTM expects to receive from the sale of the warrants.

TTM expects to use a portion of proceeds to pay the net cost of the convertible note hedge transactions and warrant transactions.

TTM is a Santa Ana, Calif.-based maker of printed circuit board, or PCBs.

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