FTD shrinks IPO, will only redeem 7¾% notes if greenshoe exercised

By Ted A. Knutson

Washington, Jan. 27 - FTD Group, Inc. said it will now only redeem its 7¾% senior subordinated notes due 2014 with proceeds from the company's planned initial offering of common stock if the greenshoe is exercised.

In the florist's latest Securities and Exchange Commission S-1/A filing, FTD is reducing expected IPO proceeds by $18.2 million by cutting back the number of common shares in the offering and with it has eliminated explicit plans to redeem or repurchase $20.2 million in principal amount of the notes.

Instead, the Chicago suburban Downers Grove, Ill.-based florist is now committing all greenshoe money to a buyback of the bonds. As of Dec. 31, $175 million in face value of the notes was outstanding.

The highest anticipated gross from the greenshoe has declined to $25.6 million from $29.9 million as the company reduced the maximum number of over-allotment shares to 13.1 million from 15.4 million.

Previously greenshoe funds were to have been used for buying back additional 7¾% notes beyond the then-committed $20.2 million in principal amount.

The notes will still be redeemed at 108% of par.

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