Cendant says $200 million greenshoe exercised, raising convertibles to $1.2 billion

New York, Dec. 6 - Cendant Corp. said underwriters of its recent offering of convertible senior debentures due 2011 exercised the over-allotment option, raising the total size to $1.2 billion.

Cendant will use proceeds from the offering to repay the its 3% $550 million subordinated convertible notes due February 2002 and to prepay a portion of a class action litigation settlement.

Cendant originally sold $1 billion of the convertibles after the market closed on Nov. 19, pricing the securities via lead manager J.P. Morgan at a yield of 3.875% and an initial conversion premium of 48%.

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