ADC Telecommunications to price $350 million convertibles in two parts after close Thursday

By Sara Rosenberg

New York, May 29 - ADC Telecommunications Inc. intends to price $350 million principal amount of convertible subordinated notes in a two-part deal after market close Thursday.

The offering consists of $175 million fixed-rate convertible subordinated notes due 2008 and $175 million of floating-rate convertible subordinated notes due 2013.

The fixed rate notes are talked to yield 1% to 1.5% with an initial conversion premium of 48% to 52%. There is hard call protection for five years.

The floating-rate notes are talked at a coupon of Libor plus 37.5 basis points to Libor plus 87.5 basis points with an initial conversion premium of 48% to 52%. There is hard call protection for five years.

Merrill Lynch & Co. is leading the Rule 144A deal.

There is a $50 million greenshoe.

The Eden Prairie, Minn. broadband company will use proceeds for general corporate purposes and strategic opportunities, including financing for possible acquisitions or investments in complementary businesses, technologies or products.

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