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Echo Global greenshoe increases 2.5% convertibles to $230 million
By Marisa Wong
Madison, Wis., May 12 – Echo Global Logistics Inc. said that the underwriters for its previously announced registered public offering of 2.5% convertible senior notes due 2020 exercised in full their option to purchase an additional $30 million of the notes, bringing total proceeds to $230 million.
Echo Global priced on April 29 an upsized $200 million of five-year convertible notes at par to yield 2.5% with an initial conversion premium of 35%, as previously reported.
The registered offering was upsized from an initially talked $150 million deal size. The greenshoe was upsized from $22.5 million.
Pricing came through the rich end of talk, which was for a 2.75% to 3.25% coupon and a 27.5% to 32.5% premium.
Concurrently with the notes, Echo Global priced 5 million shares of common stock at $29.00 each for proceeds of about $145 million.
The company announced on Tuesday that the underwriters also fully exercised the public stock offering’s greenshoe for an additional 750,000 shares.
Both the notes and the stock were sold via joint bookrunners Morgan Stanley & Co. LLC and Credit Suisse Securities (USA) LLC.
Proceeds from both deals will be used to fund a portion of the purchase price of the issuer’s pending Command Transportation LLC acquisition. In the event that the acquisition is not consummated, the company plans to use proceeds to redeem the notes and for working capital and general corporate purposes.
The company has the right to redeem the notes on Nov. 3, 2015 if the acquisition is not completed. The notes have dividend and takeover protection and mature May 1, 2020.
Chicago-based Echo Global is a provider of technology-enabled transportation and supply chain management services.
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