Altra greenshoe exercised in full, lifting convertibles to $85 million

By Devika Patel

Knoxville, Tenn., March 7 - Underwriters for Altra Holdings Inc.'s offering of 2.75% 20-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 $85 million, the company said in an 8-K filed Monday with the Securities and Exchange Commission.

As previously reported, the company sold the convertibles at par on March 1 in a Rule 144A offering via joint bookrunners J.P. Morgan Securities LLC and Jefferies & Co.

The convertibles have a conversion premium of 35% and an initial conversion price of $27.70, which equals a conversion ratio of 36.0985.

The notes are non-callable until March 1, 2015 and then are provisionally callable for three years for cash plus a make-whole premium if shares exceed 130% of the conversion price. There are puts in years seven, 10 and 15.

There is takeover and dividend protection.

Proceeds will be used for the acquisition of Danfoss Bauer GmbH if and when the acquisition closes and for general corporate purposes.

Altra is an automotive parts supplier based in Quincy, Mass.

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