Primus greenshoe exercised, raising convertibles to $132 million

New York, Sept. 15 - Primus Telecommunications Group, Inc. said the underwriters of its receive offering of convertible senior notes due 2010 exercised the $22 million over-allotment option in full, raising the size of the deal to $132 million.

The McLean, Va. telecommunications company originally sold $110 million of the securities after the market closed on Sept. 9 to yield 3.75% with a 23% initial conversion premium. The deal was increased at pricing from a planned size of $75 million.

Lehman Brothers was lead manager for the Rule 144A offering.

Primus said it intends to use part of the net proceeds of $127 million fully repay its remaining 11¾% senior notes due August 2004 and to use a "substantial" portion of the remaining net proceeds to reduce other long-term debt. It currently has $33.6 million principal amount of the 2004 notes outstanding.

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