Sino-Forest greenshoe exercised, lifting convertibles to $460 million

By Marisa Wong

Milwaukee, Dec. 15 - Sino-Forest Corp. announced that the underwriters of its offering of convertible senior notes due 2016 have exercised the $60 million over-allotment option in full, increasing the size of the offering to $460 million.

Sino-Forest priced $400 million of seven-year convertibles on Dec. 10 to yield 4.25% with an initial conversion premium of 32.5%.

Concurrently, Sino-Forest priced 19 million common shares at C$16.80 per share for gross proceeds of C$319.2 million. The underwriters have exercised the greenshoe to acquire an additional 2.85 million common shares, raising the total number of shares to 21.85 million, for total gross proceeds of C$367.08 million.

Both the notes offering and the stock offering are expected to be completed Dec. 17.

Credit Suisse Securities (USA) LLC, Bank of America Merrill Lynch and TD Securities Inc. are the initial purchasers for the notes offering. The underwriters for the stock offering are led by joint bookrunners Credit Suisse Securities (Canada), Inc. and TD Securities Inc. and include Dundee Securities Corp., RBC Dominion Securities Inc., Scotia Capital Inc., CIBC World Markets Inc., Bank of America Merrill Lynch, Canaccord Financial Ltd. and Maison Placements Canada Inc.

Sino-Forest is a commercial forest plantation operator in China.

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