Aon greenshoe exercised, raising convertibles to $300 million

New York, Nov. 7 - Aon Corp. said the underwriters of its recent offering of 3.5% convertible senior debentures due 2012 exercised in full the $50 million over-allotment option, raising the size of the deal to $300 million.

The Chicago insurance company originally sold $250 million of the convertibles after the market closed on Nov. 4 at a yield of 3.5% and an initial conversion premium of 25%.

Bookrunner for the Rule 144A offering was Morgan Stanley.

Aon also said the over-allotment for the simultaneous stock offering was also exercised in full, raising the size to 36.8 million shares at $17.18.

Proceeds from both sales will be used to repay commercial paper and other short-term debt.

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