Rambus greenshoe lifts 1.125% five-year convertibles to $138 million

By Susanna Moon

Chicago, Aug. 16 - Underwriters fully exercised the $18 million over-allotment option of Rambus Inc.'s 1.125% five-year convertible notes, bringing the total deal size to $138 million, according to an 8-K filing with the Securities and Exchange Commission.

Rambus priced an upsized $120 million of the five-year convertibles on Aug. 12 at par to yield 1.125% with an initial conversion premium of 37.5%, as previously reported by Prospect News.

The Rule 144A offering was initially talked at $100 million in size. Pricing came at the rich end of talk, which was for a 1% to 1.5% coupon and a 32.5% to 37.5% premium.

The deal's greenshoe was upsized from $15 million.

J.P. Morgan Securities LLC, Citigroup Global Markets Inc. and Jefferies LLC were the joint bookrunning managers.

The notes are non-callable with no puts. There is takeover and dividend protection.

Proceeds will be used for working capital and other general corporate purposes, which may include financing potential acquisitions and strategic transactions, and repayment of debt, including Rambus' existing 5% convertible senior notes due 2014.

Rambus is a Los Altos, Calif.-based designer of chip interface technologies and architectures.

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