By Ronda Fears
Nashville, March 13 - Arris Group Inc. said it upsized to $105 million its five-year convertibles, which were sold 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, increased from $100 million, 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 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: | $105 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
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| Conversion ratio: | 200.061
|
| Call: | Provisional with 150% trigger for life, make-whole provision for first 3 years
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| Settlement | March 18
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