PSS greenshoe fully exercised, lifts 3.125% convertibles to $230 million

By Devika Patel

Knoxville, Tenn., Aug. 8 - Underwriters for PSS World Medical, Inc.'s 3.125% six-year convertible senior notes exercised their over-allotment option in full for $30 million more of the convertibles, increasing the size of the issue to $230 million, the company said in a press release.

As previously reported, the company sold the notes at par on July 29, after the close, via bookrunner Goldman Sachs & Co.

The notes have an initial conversion premium of 27.5% and a conversion price of $21.22, which equals a conversion ratio of 47.1342.

The notes are non-callable and have no investor puts.

They have full dividend protection in the form of a conversion rate adjustment and protection for investors upon a fundamental change.

Proceeds are expected to be used to repurchase about $35 million of common stock and $150 million of the 2.25% convertible senior notes due March 15, 2024; to enter into call options overlay transactions; and for general corporate purposes.

PSS is a Jacksonville, Fla.-based specialty marketer and distributor of medical products.

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