EnerSys greenshoe fully exercised, lifts 3.375% 30-year convertibles to $172.5 million

By Devika Patel

Knoxville, Tenn., May 28 - Underwriters for EnerSys Inc.'s 3.375% 30-year convertible senior notes exercised their over-allotment option in full for $22.5 million more of the notes, increasing the size of the issue to $172.5 million, the company said in an 8-K filed Wednesday with the Securities and Exchange Commission.

As previously reported, EnerSys priced the notes at par on May 21 via joint bookrunners Goldman, Sachs & Co. and Banc of America Securities LLC, with Wachovia Capital and PNC Capital acting ac co-managers.

The notes have a conversion price of $40.60, which equals a conversion ratio of 24.6305, and a conversion premium of 40%.

The notes are non-callable for seven years, with investor puts in years 2015, 2018, 2023 and 2033.

EnerSys will pay 40 basis points of contingent interest if a 130% hurdle is breached.

Proceeds of the note offering are expected to be used to repay a portion of $351.4 million currently outstanding under EnerSys' senior secured term loan B.

Reading, Pa.-based EnerSys makes, markets and distributes reserve and motive power industrial batteries.

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