Volcano greenshoe exercised; 2.875% convertibles up to $115 million

By Marisa Wong

Madison, Wis., Sept. 20 - Volcano Corp. said that the underwriter of its recent offering of 2.875% convertible senior notes due 2015 exercised the $15 million over-allotment option in full, increasing the total size of the offering to $115 million. The deal closed on Monday, according to an 8-K filed with the Securities and Exchange Commission.

Volcano priced $100 million of five-year convertibles on Sept. 14 to yield 2.875% with an initial conversion premium of 27.5%.

J.P. Morgan Securities LLC was the bookrunner for the offering.

As previously reported, the notes are non-callable and non-putable. Holders can convert their notes after Dec. 31 if the common stock is at least 130% of the conversion price for at least 20 out of 30 trading days.

Concurrently with the deal, Volcano entered into convertible bond hedge and warrant transactions. Proceeds from the offering and warrant transactions will be used to pay the cost of the hedge transactions.

Remaining proceeds from the offering will be used for working capital and general corporate purposes.

San Diego-based Volcano develops, makes and sells intravascular ultrasound and functional measurement products for vascular and structural heart disease.

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