Sunterra greenshoe exercised, raising convertibles to $95 million

New York, March 30 - Sunterra Corp. said it closed on its $95 million offering of senior subordinated convertible notes due 2024, reflecting exercise in full of the $20 million greenshoe.

The Las Vegas vacation ownership company originally priced $75 million of the convertibles after the close on March 23 at par to yield 3.75% with a 30.5% initial conversion premium.

Merrill Lynch & Co. was bookrunner for the Rule 144A deal.

Interest payments are collateralized with Treasuries for three years.

After funding the security for the coupons, Sunterra said remaining proceeds would be used for general corporate purposes, including the reduction of debt under its existing revolving loan facility.

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