Tibco greenshoe exercised in full, lifts convertibles to $600 million

By Marisa Wong

Madison, Wis., April 27 - The $75 million over-allotment option on Tibco Software Inc.'s recent offering of 20-year convertible senior notes was exercised in full. The total size of the issuance is now $600 million, according to an 8-K filing with the Securities and Exchange Commission.

As previously reported, Tibco priced an upsized $525 million of convertible senior notes on April 17 at par to yield 2.25% with an initial conversion premium of 52.5%.

Morgan Stanley & Co LLC and J.P. Morgan Securities LLC were the active bookrunners for the Rule 144A transaction, and Citigroup Global Markets Inc. and Bank of America Merrill Lynch were the passive bookrunners.

As noted before, the bonds are non-callable for five years with puts in years five, 10 and 15. The securities have takeover and dividend protection.

Proceeds will be used to repurchase stock in transactions negotiated with institutional investors, to repay outstanding debt under the company's revolving credit facility and for general corporate purposes.

Palo Alto, Calif.-based Tibco is a business software and services company.

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