Ryland greenshoe exercised, lifts 0.25% convertibles to $267.5 million

By Devika Patel

Knoxville, Tenn., June 12 - Underwriters for Ryland Group, Inc.'s offering of 0.25% six-year convertible senior notes exercised their over-allotment option in part for $17.5 million more of the convertibles, increasing the size of the issue to $267.5 million, the company said in an 8-K filed Wednesday with the Securities and Exchange Commission.

As previously reported, the company sold the notes at par on May 14 in a registered, off-the-shelf offering via joint bookrunners Citigroup Global Markets Inc., J.P. Morgan Securities LLC, Wells Fargo Securities, LLC and RBS Securities Inc. The co-managers were Deutsche Bank Securities Inc. and UBS Securities LLC.

The convertibles have an initial conversion premium of 50% and an initial $75.01 conversion price.

The notes are non-callable for four years with no puts.

The company plans to use the proceeds for general corporate purposes, which may include acquisitions to expand market opportunities.

Westlake Village, Calif.-based Ryland is a homebuilder and mortgage finance company.

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