By Ronda Fears
Nashville, March 12 - Arris Group Inc. sold $100 million of five-year convertibles at par to yield 4.5% with a 41.6% initial conversion premium in the Rule 144A market via lead manager CIBC World Markets.
The deal sold at the middle of yield talk and aggressively outside premium guidance. Price talk had put the coupon between 4.25% and 4.75% and the premium at 25% to 30%.
Duluth, Ga.-based Arris, a telecom equipment firm, said it plans to use the proceeds to redeem at a discount the outstanding balance of the membership interest currently owed to Nortel Networks Corp. and to repurchase at a discount as many as possible of the outstanding shares of Arris stock currently owned by Nortel.
Terms of the convertible deals are;
| Issuer: | Arris Group Inc. l
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| Issue: | Convertible subordinated notes
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| Lead manager: | CIBC Capital Markets
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| Amount: | $100 million
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| Greenshoe: | $20 million
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| Maturity: | March 15, 2008
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| Coupon: | 4.5%
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| Price: | Par
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| Yield: | 4.5%
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| Conversion premium: | 41.6%
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| Conversion price: | $4.998
|
| Conversion ratio: | 200.061
|
| Call: | Provisional with 150% trigger for life, make-whole provision for first 3 years
|
| Settlement | March 15
|
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