AmTrust greenshoe fully exercised, lifts convertibles to $200 million

By Devika Patel

Knoxville, Tenn., Jan. 19 - Underwriters for AmTrust Financial Services, Inc.'s offering of 5.5% 10-year convertible senior notes exercised their over-allotment option in full for $25 million more of the convertibles, increasing the size of the issue to $200 million, the company said in an 8-K filed Thursday with the Securities and Exchange Commission.

As previously reported, the company sold the notes at par on Dec. 21 in a Rule 144A offering via bookrunners Goldman Sachs & Co. and J.P. Morgan Securities LLC.

The convertibles have an initial conversion premium of 25% and an initial $31.83 conversion price, which equals a conversion ratio of 31.4218.

There is a change-of-control put at par plus interest.

Proceeds will be used for general corporate purposes, which may include working capital, repayment of debt, capital expenditures and/or strategic acquisitions.

AmTrust is a New York-based multinational specialty property and casualty insurance company.

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