PMI greenshoe exercised, raising convertibles to $345 million

New York, Nov. 3 - The PMI Group, Inc. said underwriters of its recent sale of equity units exercised the $45 million over-allotment option in full, raising the size of the deal to $345 million.

The Walnut Creek, Calif. mortgage insurer originally sold $300 million of the securities after the market closed on Oct. 28 to yield 5.875% with a 24% initial conversion premium.

Bookrunner for the registered offering was Banc of America Securities LLC.

PMI plans to use proceeds to help finance its investment in the purchase of Financial Guaranty Insurance Co. from General Electric Co., which was announced Aug. 4. Any proceeds not applied to that purpose will be used for working capital and general corporate purposes.

Citigroup Global Markets Inc., J.P. Morgan Securities Inc. and Lehman Brothers Inc. were co-managers.

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