PacifiCare says $10 million of greenshoe exercised, raising convertibles to $135 million

New York, Dec. 20 - PacifiCare Health Systems Inc. said underwriters of its recent offering of 3% convertible subordinated debentures due 2032 exercised $10 million of the greenshoe, raising the deal to $135 million.

The Cypress, Calif. company originally sold $125 million of the convertibles after the market closed on Nov. 19, pricing them at par to yield 3% with a 37.66% initial conversion premium.

The greenshoe was up to $25 million in size.

Morgan Stanley was bookrunner for the Rule 144A deal.

Proceeds will be used to repay bank debt and for general corporate purposes.

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