Vector Group says further $2 million of greenshoe exercised, raising convertibles to $70.3 million

New York, Feb. 2 - Vector Group Ltd. said the underwriters of its recent convertible offering exercised a further $2 million of the $16.375 million greenshoe on Tuesday, raising the size of the deal to $70.310 million.

The underwriters have until March 18 to exercise the remainder of the over-allotment option.

Vector originally priced $65.5 million of the convertibles after the market closed on Nov. 16 with a 17.6% initial conversion premium. An initial $1.406 million of the greenshoe was exercised on Dec. 21 and a further $1.404 million on Jan. 11. The coupon is 5% plus a portion of dividends on the underlying common stock at a minimum of 6.75% through November 2006.

Jefferies & Co. was bookrunner for the Rule 144A deal.

The Miami-based tobacco company plans to use proceeds to redeem the 10% senior secured notes due March 31, 2006 issued by subsidiary VGR Holding Inc. and for general corporate purposes.

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