Overstock.com $75 million convertible talked at 3.625%-4.125%, up 30%-35%

By Ronda Fears

Nashville, Nov. 15 - Overstock.com Inc. on Monday launched $75 million of seven-year convertible senior notes talked to yield 3.625% to 4.125% with a 30% to 35% initial conversion premium.

Lehman Brothers Inc. is bookrunner of the Rule 144A deal, which is slated to price after the market close Wednesday or before the market open Thursday. Co-managers include Piper Jaffray and Legg Mason.

There is full dividend and takeover protection for holders.

A $15 million greenshoe is available.

The Salt Lake City-based online retailer said proceeds would be used for general corporate purposes, including possible acquisitions, although no acquisition plans are pending. The company also plans a concurrent sale of 1 million shares of common stock.

Overstock.com shares on Monday lost $2.90, or 4.82%, to close at $57.30.

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