Solazyme greenshoe lifts 5% 5.5-year convertibles to $149.5 million

By Toni Weeks

San Luis Obispo, Calif., April 1 - Underwriters for Solazyme Inc.'s offering of 5% 5.5-year convertible senior subordinated notes fully exercised their over-allotment option on April 1 for an additional $19.5 million of convertibles, bringing total issuance to $149.5 million, according to an 8-K filing with the Securities and Exchange Commission.

The company priced $130 million of the notes with the greenshoe at par with an initial conversion premium of 20% on March 26. Pricing came at the rich end of 5% to 5.5% coupon talk and at the 20% talked premium.

The registered offering was originally for $100 million of convertibles with a $15 million greenshoe before being upsized.

Solazyme also completed on Tuesday the issue of 5.75 million shares of common stock at $11.00 per share for $63.25 million of proceeds. Of the shares, 750,000 comprised the greenshoe, which was fully exercised.

Goldman Sachs & Co. was the bookrunner for the notes offering, and Goldman and Morgan Stanley & Co. LLC were the bookrunners for the stock offering.

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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