World Acceptance greenshoe exercised, upping convertibles to $110 million

By Angela McDaniels

Seattle, Oct. 12 - World Acceptance Corp. said the underwriter of its offering of 3% convertible senior subordinated notes due 2011 exercised its $10 million greenshoe in full on Tuesday, raising the deal to $110 million.

The company priced $100 million of the convertibles at par after the close on Oct. 3 with a conversion price of $62.41.

The 3% coupon and 35% initial conversion premium came in at the rich end of talk, which was revised to between 3% and 3.125% with an initial conversion premium of 35% on Oct. 3 from the original guidance of a coupon between 3% and 3.5% with an initial conversion premium between 30% and 35%.

JP Morgan was bookrunner for the Rule 144A offering.

World Acceptance, a Greenville, S.C.-based consumer finance company, plans to use $8.7 million of the proceeds to enter into convertible note hedge and warrant transactions. It will also buy back up to $50 million of its common stock and repay a portion of its existing senior secured revolving loan.

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