RTI greenshoe exercised, lifting 1.625% convertibles to $402.5 million

By Marisa Wong

Madison, Wis., April 24 - RTI International Metals Inc. said the underwriters of its recent offering of 6.5-year convertible senior notes exercised their $52.5 million over-allotment option in full, increasing the total size of the issue to $402.5 million. The deal settled on Wednesday, according to a news release.

The company priced on April 11 $350 million of 1.625% convertibles at par with an initial conversion premium of 35%.

Barclays and Citigroup Global Markets Inc. were the joint bookrunners.

The registered offering was initially sized at $250 million. As previously reported, pricing came at the rich end of talk, which was for a coupon of 1.625% to 2.125% and a premium of 30% to 35%.

The greenshoe was previously upsized to $52.5 million from $37.5 million.

Conversions will be settled in shares, cash or a combination of both at the company's election.

The notes have contingent conversion if shares are at least 130% of the conversion price. They are non-callable with no puts. There is also takeover and dividend protection.

About $132.1 million of the proceeds will be used to repurchase about $115.6 million of RTI's existing 3% convertible notes due 2015. Remaining proceeds will be used for working capital and general corporate purposes, including capital expenditures and potential future acquisitions.

Pittsburgh-based RTI is a producer of titanium mill products.

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