Liz Claiborne gets full $15 million greenshoe exercise, pushing 6% convertibles issue to $90 million

By Jennifer Chiou

New York, June 24 - Liz Claiborne Inc. announced that the $15 million over-allotment option was exercised in full, making its issue of 6% convertible senior notes rise to $90 million total.

On June 18, the company priced $75 million of the five-year convertibles after the market close with an initial conversion premium of 20%.

As already reported, the deal priced at the cheap end of talk, which guided for a coupon of 5.5% to 6% and an initial conversion premium of 20% to 25%.

The Rule 144A offering has a greenshoe of $15 million and the deal was sold via bookrunners JP Morgan Securities and Merrill Lynch.

The notes are non-callable with no puts except a change-of-control put.

The $86.6 million of net proceeds are to pay down temporarily a portion of outstanding borrowings under its amended credit facility.

New York-based Liz Claiborne is a women's apparel designer and retailer.

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