Photronics greenshoe lifts 3.25% convertibles to $115 million

By Melissa Kory

Cleveland, March 28 - Photronics, Inc. said that underwriters exercised their $15 million over-allotment option, lifting the offering of 3.25% convertible senior notes due April 1, 2016 to $115 million.

Photronics priced $100 million of the five-year convertibles on March 22 at the rich end of price talk with an initial conversion premium of 32.4%.

The convertibles are convertible into shares of common stock at an initial conversion rate of 96.3879 shares per $1,000 principal amount of convertibles, an initial conversion price of $10.37 per share.

The proceeds will be used acquire up to $30 million of the company's outstanding 5.5% convertible senior notes due 2014 in individually negotiated transactions, repay up to $23 million of other outstanding higher-interest-bearing debt, acquire additional 5.5% notes in the open market and for general corporate purposes, which may include working capital and capital expenditures.

Photronics is a Brookfield, Conn.-based maker of semiconductor manufacturing components.

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