LodgeNet greenshoe exercised, lifts 10% preferreds to $57.5 million

By Devika Patel

Knoxville, Tenn., June 29 - Underwriters for LodgeNet Interactive Corp.'s 10% series B cumulative perpetual convertible preferred stock exercised their over-allotment option in full for $7.5 million more of the preferreds, increasing the size of the issue to $57.5 million, the company said in press release.

As previously reported, the company sold the preferreds at par of $1,000 on June 23 via bookrunner Bank of America/Merrill Lynch in a Rule 144A deal.

The preferreds have an initial conversion premium of 10% and an initial conversion price of $3.78, which equals a conversion ratio of 264.5503.

The preferreds are callable subject to a hurdle at 150% of the conversion price and a make-whole dividend payment for the first five years. Thereafter, the preferreds may be called subject to a hurdle at 125% of the conversion price.

Proceeds will be used to reduce the outstanding balance on a term loan and for general working capital.

LodgeNet is a Sioux Falls, S.D.-based provider of interactive media and connectivity services to the hospitality industry.

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