Solazyme greenshoe fully exercised, lifts convertibles to $125 million

By Devika Patel

Knoxville, Tenn., Jan. 24 - The underwriter of Solazyme Inc.'s offering of 6% five-year convertible senior subordinated notes exercised its over-allotment option in full for $10 million more of the convertibles, increasing the size of the issue to $125 million, the company said in an 8-K filed Thursday with the Securities and Exchange Commission.

As previously reported, the company sold the convertibles at par of $1,000 on Jan. 18 in a Rule 144A offering via bookrunner Goldman Sachs & Co.

The convertibles have an initial conversion premium of 20% and an initial conversion price of $8.26, which equals a conversion ratio of 121.1240.

The convertibles are non-callable with no investor puts. There is full dividend and takeover protection.

Proceeds will be used to fund project-related costs and capital expenditures and for general corporate purposes.

San Francisco-based Solazyme uses plant-based sugars to produce oils for use in the chemicals and fuels industries as well as for the nutrition, skin and personal care markets.

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