NetSuite greenshoe exercised, lifts 0.25% convertibles to $310 million

By Marisa Wong

Madison, Wis., June 10 - The underwriters of NetSuite Inc.'s recent offering of 0.25% convertible senior notes due 2018 exercised the $40 million over-allotment option in full. The company completed the $310 million private placement on June 4, according to an 8-K filing with the Securities and Exchange Commission.

The company priced the initial $270 million of five-year convertible notes on May 30 at par to yield 0.25% with an initial conversion premium of 35%, as previously reported.

J.P. Morgan Securities LLC and Barclays were the joint bookrunners for the Rule 144A deal.

The notes will be non-callable, with no puts. They have takeover protection, as noted before.

Proceeds will be used for working capital and other general corporate purposes, including possible acquisitions and to buy back about $30 million of shares of common stock.

San Mateo, Calif.-based NetSuite provides cloud-based financials and enterprise resource planning software suites in the United States and internationally.

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