Accuray greenshoe fully exercised, lifts convertibles to $115 million

By Devika Patel

Knoxville, Tenn., Feb. 20 - Underwriters for Accuray Inc.'s offering of 3.5% five-year convertible senior notes exercised their over-allotment option in full for $15 million more of the convertibles, increasing the size of the issue to $115 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 Feb. 7 in a Rule 144A offering via bookrunner J.P. Morgan Securities LLC.

The convertibles have an initial conversion premium of 20% and an initial $5.33 conversion price, which equals a conversion ratio of 187.6877.

The notes are non-callable with no puts. There is takeover and dividend protection, and the notes will be cash settled.

Proceeds are intended for working capital and general corporate purposes, including investing strategically in expanding business and new product initiatives.

Sunnyvale, Calif.-based Accuray is a developer of robotic radiosurgery for the treatment of tumors.

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