Ciber $100 million convertible talked at 2.875-3.25%, up 46-50%

By Ronda Fears

Nashville, Nov. 24 - Ciber Inc. launched $100 million of 20-year convertible notes talked to yield 2.875% to 3.25% with a 46% to 50% initial conversion premium after Monday's close. There will be a full day of marketing, with pricing after the close Tuesday.

Wachovia Securities is sole bookrunner of the Rule 144A deal.

The senior subordinated debentures will be non-callable for five years, then for two years with a 130% hurdle. There are cash puts in years five, seven, 10 and 15.

There is a 120% contingent conversion trigger.

There is a $25 million greenshoe available.

The Greenwood Village, Colo.-based information technology consulting firm said $28 million of proceeds would be used to purchase its common stock sold short by purchasers of the convertible, and up to $34 million if the greenshoe is exercised.

Ciber shares closed Monday up 35 cents, or 3.82%, to $9.51.

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