Teleflex greenshoe fully exercised, lifts convertibles to $400 million

By Devika Patel

Knoxville, Tenn., Aug. 9 - The underwriters for Teleflex Inc.'s offering of 3.875% seven-year convertible senior subordinated notes exercised their over-allotment option in full for $50 million more of the convertibles, increasing the size of the issue to $400 million, the company said in an 8-K filed Monday with the Securities and Exchange Commission.

As previously reported, the company sold the convertibles at par on Aug. 3 in a registered offering via joint bookrunners Goldman, Sachs & Co., Jefferies & Co., Morgan Stanley & Co. Inc., Bank of America Merrill Lynch and J.P. Morgan Securities Inc.

The convertibles have a conversion premium of 15% and an initial conversion price of $61.32, which equals a conversion ratio of 16.3084.

A portion of the proceeds, or $25 million, was earmarked to pay the cost of the convertible note hedge transactions. The remaining proceeds will be used to repay $200 million of term loan borrowings, prepay all of Teleflex's outstanding senior notes issued in 2007 and pay related transaction fees and expenses.

Limerick, Pa.-based Teleflex is a provider of single-use medical devices, including catheters and surgical products.

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