InvenSense greenshoe brings 1.75% convertibles to $175 million

By Jennifer Chiou

New York, Nov. 13 - InvenSense Inc. announced the full exercise of the $25 million over-allotment option for its five-year convertible senior notes, increasing the total amount to $175 million.

The company priced the notes after the market close on Nov. 6 at par to yield 1.75% with an initial conversion premium of 37.5%.

As previously reported, the Rule 144A offering was initially talked at $125 million in size. The greenshoe was upsized from an initially talked $18.75 million.

Pricing came through the tight end of coupon talk, which was for a 2% to 2.25% coupon, and at the tight end of 32.5% to 37.5% premium talk.

Goldman Sachs & Co. was the bookrunner of the non-callable bonds.

Proceeds are intended for general corporate purposes, including capital expenditures and working capital, and also to pay for the net cost of convertible note hedge and warrant transactions. This call spread boosts the initial conversion premium from the issuer's perspective to 80%.

InvenSense is a San Jose, Calif.-based maker of motion tracking devices in consumer electronics.

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