AtheroGenics greenshoe exercised, raising convertibles to $200 million

By Caroline Salls

Pittsburgh, Jan. 12 - AtheroGenics Inc. said the underwriters of its recent offering of 1.5% convertible notes due 2012 exercised the $25 million over-allotment option in full, raising the size of the deal to $200 million.

The Atlanta-based biotech firm focused on chronic inflammatory diseases such as clogged arteries originally priced $175 million of the securities after the close on Jan. 6 to yield 1.5% with a 35% initial conversion premium.

Morgan Stanley & Co. was the bookrunner for the Rule 144A deal.

Proceeds will be used to fund ongoing costs of the ARISE trial of AGI-1067 and other research and development, including clinical trials, process development and manufacturing support, and for general corporate purposes, including working capital.

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