Super Micro greenshoe ups 0% five-year convertibles to $1.73 billion

By Mary-Katherine Stinson

Lexington, Ky., Feb. 28 – Super Micro Computer Inc.’s full $225 million greenshoe was exercised on its 0% five-year convertible senior notes, lifting the size of the issue to $1.725 billion, according to an 8-K filing with the Securities and Exchange Commission.

The notes priced after the market close on Thursday with an initial conversion premium of 37.5%.

Super Micro entered into additional capped call transactions with the sale of the additional notes. The cap price of the capped call transactions was initially $1,951.04 per share, a 100% premium to the last share price on Feb. 22.

Goldman Sachs & Co. LLC, BofA Securities Inc., J.P. Morgan Securities LLC and BMO Capital Markets Corp. were bookrunners for the Rule 144A offering.

ICR Capital LLC acted as financial adviser to the company.

The notes are non-callable for three years and then subject to a 130% hurdle.

They are putable upon a fundamental change.

The company received net proceeds from the offering of approximately $1.7 billion, approximately $142.1 million of which were used to fund the cost of entering into the capped call transactions, with the remainder earmarked for general corporate purposes, including growth and business expansion.

Super Micro is a San Jose, Calif.-based information technology company.

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