Priceline greenshoes increase 0.5%, 0.75% convertibles to $172.5 million each

By Laura Lutz

Des Moines, Oct. 12 - priceline.com Inc. announced the full exercise of the greenshoe in its previously announced offering of 0.5% convertible senior notes due 2011 and 0.75% convertible senior notes due 2013, for a total deal size of $345 million.

The company sold $172.5 million of each series of notes, including a $22.5 million greenshoe for each.

The deal priced as an offering of $150 million of 0.5% notes and $150 million of 0.75% notes on Sept. 22.

The initial conversion premium for both series was set at 20%.

The sale of the $300 million of notes originally included in the deal was closed on Sept. 27. Settlement of the additional notes is expected on Oct. 13.

Goldman Sachs was the bookrunner of the Rule 144A offering.

Norwalk, Conn.-based Priceline.com, an online travel company, plans to use the proceeds to repurchase up to $150 million of its common stock and to repay existing convertible debt that will become due in 2008. The company plans to tender for all its outstanding convertible debt due 2010 and 2025 in a part-cash, part-exchange offer.

Priceline will also enter into convertible note hedge transactions and fund general corporate purposes with the proceeds of the deal.

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