Lawson greenshoe fully exercised to push 2.5% convertibles issue to $240 million

By Jennifer Chiou

New York, April 23 - Lawson Software Inc.'s greenshoe for $40 million was exercised in full to raise its issue of 2.5% convertible senior notes to $240 million, according to an 8-K filing with the Securities and Exchange Commission.

After the close on April 17, the company priced $200 million of the five-year convertibles with an initial conversion premium of 35%

As already reported, the convertibles were offered at par. They were talked at a coupon of 2.25% to 2.75% and an initial conversion premium of 32.5% to 37.5%.

Lehman Brothers was the bookrunner of the Rule 144A offering.

The convertibles are non-callable and may not be put.

There is a contingent conversion trigger at 130% of the conversion price.

The convertibles will be dividend and takeover protected.

Lawson, a St. Paul, Minn.-based software developer, said it will use some of the proceeds to fund convertible note hedge and warrant transactions. The warrants have an initial strike premium of 75%. The company also will concurrently buy back 5.4 million shares of its common stock for $47.9 million, or $8.90 apiece. The remaining proceeds will be used for general purposes.

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