Assured Guaranty greenshoe lifts 8.5% equity units to $172.5 million

By Devika Patel

Knoxville, Tenn., June 22 - Underwriters for Assured Guaranty Ltd.'s 8.5% mandatory convertible equity units exercised their over-allotment option in full for 450,000 more of the units, or $22.5 million, increasing the size of the issue to $172.5 million, the company said in a press release.

As previously reported, the company sold the units at $50 apiece on June 18 in a registered offering via bookrunner Merrill Lynch.

The units have a conversion premium of 17.5% and a threshold appreciation price of $12.93. The minimum conversion rate is 3.8685, and the maximum conversion rate is 4.5455.

Proceeds of the equity units will be used to pay cash in lieu of common stock for part of the purchase price of its acquisition of Financial Security Assurance Holdings Ltd.

Assured is a Hamilton, Bermuda, provider of credit enhancement for municipal finance, structured finance and mortgage markets.

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