InterOil greenshoe exercised, lifts 2.75% convertibles to $70 million

By Melissa Kory

Cleveland, Nov. 10 - InterOil Corp.'s underwriters exercised their $9 million over-allotment option for the closed public offering of 2.75% convertible senior notes due Nov. 15, 2015, lifting the $61 million sale to $70 million.

The original $61 million convertibles were priced at par to yield 2.75% with an initial conversion premium of 27.5% on Nov. 5. Morgan Stanley & Co. was the bookrunner.

The offering closed alongside the offering of $183 million, or 2,434,735 shares, of common stock at $75 per share. An additional 365,215 shares were acquired through an over-allotment option. Morgan Stanley and Macquarie Capital (USA) Inc. were the joint bookrunners.

InterOil received $266 million proceeds from the offerings. The proceeds will be used for the development and construction in Papua New Guinea of a proposed condensate stripping plant and related facilities, a liquefied natural gas plant and related facilities, exploration and development activities in Papua New Guinea, the repayment of the $25 million loan with Clarion Finaz AG, which matures in January 2011, and general corporate purposes.

Based in Cairns, Australia, and the Woodlands, Texas, InterOil is an energy exploration and production company with assets in Papua New Guinea.

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