Allegheny Technologies greenshoe exercised, lifts 4.25% five-year convertibles to $402.5 million

By Devika Patel

Knoxville, Tenn., June 2 - Underwriters for Allegheny Technologies Inc.'s offering of 4.25% five-year convertible senior notes exercised their over-allotment option in full for $52.5 million more of the notes, increasing the size of the issue to $402.5 million, according to press release.

As previously reported, the company sold the notes at par on May 27, after the close, in a registered shelf offering via bookrunners J.P. Morgan Securities Inc. and Citigroup Global Markets Inc.

The notes have a conversion premium of 30% and a conversion ratio of 23.9263, which equals a conversion price of $41.80.

The convertibles are non-callable with no puts except in a takeover.

Proceeds are earmarked to manage liabilities and other obligations, such as by making voluntary contributions to the company's defined benefit pension trust and contributions to trusts established to fund retiree medical benefits.

Pittsburgh-based Allegheny is a diversified specialty metals producer.

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