Sybase greenshoe exercised, raising convertibles to $460 million

By Caroline Salls

Pittsburgh, Feb. 22 - Sybase Inc. said the underwriters of its recent offering of convertible subordinated notes due 2025 exercised the $60 million over-allotment option in full, raising the size of the deal to $460 million.

The Dublin, Calif.-based wireless software company for mobile and wi-fi technologies and Linux server software developer originally priced $400 million of the securities after the close on Feb. 15 to yield 1.75% with a 35% initial conversion premium.

Lehman Brothers Inc. and Merrill Lynch & Co. were the bookrunners for the Rule 144A deal.

Up to $125 million of proceeds will be used to buy back stock concurrent with the offering of the notes. Remaining proceeds will be used for working capital and general corporate purposes, which may include acquisitions, strategic investments or additional purchases of common stock.

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