October 16, 2009 (FinancialWire) — Title insurer Stewart Information Services Corp. (NYSE: STC) has closed a private placement of $65 million of 6.00% convertible senior notes due 2014.

The amount includes the exercise in full of the initial purchaser’s over-allotment option to purchase $5 million of additional notes.

Stewart received net proceeds from the sale of around $62.3 million.

The notes will pay interest semiannually at a rate of six percent per annum beginning on April 15, 2010. They are convertible into shares of Stewart’s common stock at an initial conversion rate of 77.6398 shares per $1,000 principal amount of notes, which is equal to a conversion price of $12.88 per share.

Stewart said the notes are guaranteed by its Stewart Title unit and certain of its wholly-owned domestic subsidiaries.

The company plans to use the net proceeds from the offering to pay down $60.5 million of outstanding unsecured callable bank debt, which results in an extension of Stewart’s debt maturities.

Houston-based Stewart Information Services is a real estate information and transaction management company. Stewart provides title insurance and related services and delivers state-of-the-art real estate information services, software and solutions to its clients.

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