Stericycle greenshoe lifts 5.25% mandatory convertibles to $770 million

By Tali Rackner

Norfolk, Va., Sept. 15 – Underwriters for Stericycle Inc.’s 5.25% series A mandatory convertible preferred stock exercised their over-allotment option in full, adding an additional $70 million, according to an 8-K filing with the Securities and Exchange Commission.

The company priced $700 million of the stock on Sept. 9.

As previously reported, unless earlier converted or redeemed, each preferred will automatically convert into a variable number of common shares on Sept. 15, 2018.

BofA Merrill Lynch, Goldman Sachs & Co. and J.P. Morgan Securities LLC were the joint bookrunning managers of the deal.

Net proceeds are earmarked to finance the company’s previously announced acquisition of Shred-it International ULC, Shred-it JV LP, Boost GP Corp. and Boost Holdings LP, including the payment of related fees and expenses.

The mandatory convertible preferreds deal is not contingent on completion of the acquisition. If the acquisition is not completed by Jan. 15, 2016, the company has the option to redeem the preferreds.

Lake Forest, Ill.-based Stericycle is a provider of medical waste collection, transportation, treatment and disposal services and safety and compliance programs.

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