Advanced Medical Optics greenshoe exercised, raising 3.25% convertibles offering to $500 million

By Jennifer Chiou

New York, June 13 - Advanced Medical Optics, Inc. said underwriters fully exercised a $50 million greenshoe, augmenting its recent sale of 3.25% convertible senior subordinated notes to $500 million, according to an 8-K filing with the Securities and Exchange Commission.

On June 7, Advanced Medical Optics priced $450 million of the 20-year convertibles at a coupon of 3.25% and an initial conversion premium of 30%.

Goldman Sachs, UBS Investment Bank and Banc of America Securities were the bookrunners of the Rule 144A offering.

The notes are non-callable for the first eight years, with puts in years eight, 11 and 15.

There is a contingent conversion threshold at 130% of the conversion price and contingent payment at 120%.

Advanced Medical Optics, a Santa Ana, Calif.-based maker of medical eye devices, will use the proceeds of the deal and cash from its existing borrowings to buy back $500 million of its common stock and to repurchase up to $100 million of its outstanding convertibles through private negotiations.

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