Greenhill to offer 3.5 million shares

NEW YORK - Investment bank Greenhill & Co. Inc. said on Wednesday it has begun a stock offering aimed at paying down debt.

The offering will include 1.25 million newly issued shares and 2.25 million shares "currently owned by certain managing directors," the company said. Greenhill said it also expects the selling shareholders to grant an overallotment option of 525,000 shares.

The company said it will not receive any proceeds from the sales of shares from the selling stockholders.

Greenhill has roughly 26.7 million shares outstanding.

Shares of the company fell $7.42, or 10.6 percent, to $62.60 in afternoon trading.

On Oct. 24, Greenhill posted an unexpected third-quarter loss driven by the falling value of its merchant bank investments.

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