Spartan $15 million greenshoe fully exercised, raising 3.375% convertibles to $110 million

By Susanna Moon

Chicago, May 30 - Spartan Stores, Inc. said the underwriters exercised in full the $15 million over-allotment option on its unsecured convertible senior notes due May 15, 2027. The action raises the total size of the deal to $110 million.

On May 23, Spartan Stores priced an upsized $95 million of the 20-year convertible senior notes, increased from $75 million. The convertibles were offered at par.

The notes are convertible at an initial rate of 28.031 shares of common stock per $1,000 principal amount of notes, or $35.67 per share. The conversion price represents a 37% premium over its reported close of $26.04 per share on May 23.

Banc of America and Bear Stearns are the bookrunners for the Rule 144A deal.

Spartan Stores raised $106.5 million from the sale of the notes. The company said it plans to use the proceeds to repay its revolving credit facility and for working capital, capital expenses and other corporate purposes.

Spartan Stores is a Grand Rapids, Mich.-based grocery distributor and retailer.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.