Rallye says greenshoe exercised on convertibles, raising size to €264.5 million

New York, Jan. 14 - Rallye said the €34.5 million over-allotment option was exercised in full on its recent issue of convertible bonds in the Oceane structure, raising the size of the offering to €264.5 million.

Rallye originally priced €230 million of the 3.75% securities due 2008 on Jan. 8, selling them to yield 5.5% with a 26% initial conversion premium. An option to increase the deal at pricing was exercised, raising the size from the €200 million first announced.

Underwriters were ABN AMRO Rothschild, BNP Paribas and Crédit Lyonnais.

Paris-based food and sporting goods retailer Rallye said proceeds of the deal will be used in connection with its general financing needs and to increase financial flexibility including refinancing the convertible bond issued in 1998 that matured on Jan. 1.

The bonds were sold in a private placement and also as a public offering in France. They were not offered in the U.S., Canada or Japan.

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