Veritas DGC greenshoe exercised, raising convertibles to $155 million

New York, March 11 - Veritas DGC Inc. said the underwriters of its recent offering of floating-rate convertible senior notes due 2024 exercised the $30 million over-allotment option in full, raising the size of the deal to $155 million.

The Houston provider of geophysical services and reservoir technologies to the petroleum industry originally priced $125 million of the securities after the market closed on Feb. 26 to yield three-month Libor minus 75 basis points with a 47% initial conversion premium.

Deutsche Bank Securities was bookrunner of the Rule 144A deal.

Veritas will use the greenshoe proceeds to repay bank debt, as it did with proceeds of the original issue. The company now has $52 million of borrowings on the facility at a current weighted average interest rate of 6.6%.

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