Lincare greenshoe exercised, raising convertibles to $275 million

New York, June 23 - Lincare Holdings Inc. said underwriters of its recent sale of 3% convertible senior debentures due 2033 exercised the $25 million over-allotment option in full, raising the size of the deal to $275 million.

The Clearwater, Fla. provider of oxygen and other respiratory therapy services originally sold $250 million of the convertibles after the market closed on June 5 to yield 3.0% with a 70% initial conversion premium.

JPMorgan and Banc of America Securities were joint bookrunners for the Rule 144A deal.

Concurrently with the pricing, Lincare bought $45 million of stock from short sellers participating in the convertible.

The balance of proceeds will be used for general corporate purposes, which may include repaying outstanding borrowings under its revolving credit facility and repurchases of additional stock.

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