Pioneer greenshoe exercised, lifts 2.875% convertibles to $500 million

By Devika Patel

Knoxville, Tenn., Jan. 22 - Underwriters for Pioneer Natural Resources Co.'s $440 million issue of 2.875% convertible senior notes due Jan. 15, 2038 exercised their over-allotment option in full for $60 million, increasing the size of the issue to $500 million, according to an 8-K filed with the Securities and Exchange Commission Tuesday.

As previously reported, Pioneer originally priced the convertibles on Jan. 15 with an initial conversion premium of 65%. The convertibles have a conversion price of $72.60 per share and a conversion rate of 13.7741.

Credit Suisse and UBS Investment Bank are joint bookrunners.

The company plans to use the proceeds to repay some of its outstanding bank debt.

Pioneer is a Dallas-based oil and gas driller.

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