Addax greenshoe fully exercised, lifts 3.75% convertibles to $300 million

By Jennifer Chiou

New York, May 30 - Switzerland's Addax Petroleum Corp. said its $25 million over-allotment option was exercised in full, pushing its issue of 3.75% convertible senior unsecured bonds to $300 million.

On May 10, the company priced $275 million of the five-year convertibles at the rich end of talk with an initial conversion premium of 40%.

As already reported, the convertible was offered at par. The deal was talked at a coupon of 3.75% to 4.25% and an initial conversion premium of 35% to 40%.

Citigroup and UBS Investment Bank were the bookrunners of the Regulation S offering.

The bonds are convertible into Addax's Toronto-listed common stock.

The convertibles are non-callable for the first three years, after which they may be called subject to a hurdle at 130% of the conversion price. The convertibles may not be put.

The convertibles have dividend and takeover protection. There is a net-share settlement feature.

Addax, a Geneva-based oil and gas exploration and production company, said it will use the proceeds of the deal for general corporate purposes.

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