Five Star greenshoe exercised, upping convertibles to $126.5 million

By Angela McDaniels

Seattle, Oct. 24 - Five Star Quality Care Inc. said the underwriter of its offering of 3.75% convertible senior unsecured notes due 2026 exercised its $16.5 million greenshoe in full, raising the deal to $126.5 million.

The company priced $110 million of the convertibles at par after the close on Oct. 12 with a conversion price of $13.00.

Price talk was for a coupon of 3.75% to 4.25% and an initial conversion premium of 22.5% to 27.5%. The size of the issue was originally increased from $80 million.

UBS Investment Bank was bookrunner for the Rule 144A offering.

Five Star, a Newton, Mass.-based nursing home and senior living community operator, said the proceeds will be used for general purposes, including possible future acquisitions.

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