Chemed greenshoe fully exercised, lifts 1.875% convertibles to $200 million

By Laura Lutz

Des Moines, May 14 - Chemed Corp. announced the full exercise of the $20 million greenshoe on its previously announced offering of 1.875% seven-year convertible senior notes, bringing the total deal size to $200 million.

The convertibles were offered at par with an initial conversion premium of 22.5%.

The deal priced as a $180 million offering with a $20 million greenshoe on May 9.

Citigroup and JP Morgan were the bookrunners of the Rule 144A offering.

The convertibles are non-callable and may not be put.

There is a contingent conversion trigger at 130% of the conversion price.

Chemed, a Cincinnati-based provider of hospice care services, said it will use the proceeds of the deal to fund convertible note hedge and warrant transactions. It will also buy back about $100 million of its common stock and repay its revolving debt.

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