State Street says $45 million greenshoe exercised, raising convertibles to $345 million

New York, Jan. 17 - State Street Corp. said the underwriters of its recent offering of Spaces convertibles exercised the $45 million over-allotment option in full, raising the size of the deal to $345 million.

The Boston-based bank originally issued $300 million of the securities in a deal that was raised from the planned size of $275 million.

They were priced via bookrunner Goldman, Sachs & Co. to yield 6.75% with a 23% initial conversion premium.

The Spaces are a mandatory structure designed to achieve Tier 1 capital treatment. Goldman Sachs has filed a patent application covering the securities.

State Street the over-allotment option was also exercised on its offering of floating-rate medium-term capital securities and its stock offering. Total proceeds will be $595 million which will be used to fund part of the up-front purchase price payable upon the pending acquisition of Deutsche Bank AG's Global Securities Services business. State Street does not receive proceeds from the Spaces until Dec. 15, 2005 (if certain regulatory requirements are met, otherwise Feb. 15, 2008).

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