Advanced Medical greenshoe exercised, raising convertibles to $350 million

Pittsburgh, June 23 - Advanced Medical Optics Inc. said the underwriters of its recent private offering of senior subordinated notes due 2010 exercised the $50 million over-allotment option in full, raising the size of the deal to $350 million.

The Santa Ana, Calif., maker of ophthalmic surgical and eye care products originally priced $300 million of the securities after the close on June 16 to yield 2.5% with a 34.01% initial conversion premium.

Lehman Brothers, Banc of America Securities and Morgan Stanley & Co. Inc. were the bookrunners of the Rule 144A deal.

The company will use $84 million of the proceeds to repurchase up to $70 million of its outstanding 9¼% senior subordinated notes due 2010, to make payments on a cash tender offer and consent solicitation started on June 9, to fund part of the purchase price for its pending acquisition of Pfizer Inc. and for general corporate purposes.

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