Violin Memory greenshoe exercised, ups convertible sale to $120 million

By Tali Rackner

Norfolk, Va., Oct. 6 – Underwriters for Violin Memory, Inc.’s 4.25% convertible senior notes due Oct. 1, 2019 exercised their over-allotment option in full, adding an additional $15 million, according to an 8-K filing with the Securities and Exchange Commission.

The company priced an upsized $105 million of the notes on Sept. 19.

As previously reported, Jefferies & Co. was the bookrunner.

The notes are non-callable for three years until Oct. 17, 2017 and are then provisionally callable if the underlying shares exceed 130% of the conversion price.

There is takeover and dividend protection.

Proceeds will be used for general corporate purposes, including working capital and repayment of all amounts outstanding under the company’s credit agreement with Silicon Valley Bank.

Santa Clara, Calif.-based Violin Memory develops and supplies computer data storage products.

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