Ciena talks $450 million 10-year convertibles at 0.625%-1.125%, up 13%-17%, to price Tuesday

By Kenneth Lim

Boston, June 4 - Ciena Corp. plans to price $450 million of 10-year convertible senior notes on Tuesday after the market closes, talked at a coupon of 0.625% to 1.125% with an initial conversion premium of 13% to 17%.

The convertibles will be offered at par.

There is an over-allotment option for a further $50 million.

Deutsche Bank is the bookrunner of the registered offering.

The convertibles will be non-callable and may not be put.

The notes will have dividend and takeover protection.

Ciena, a Linthicum, Md.-based supplier of communications networking equipment and software, said about $38.3 million of the proceeds will fund a call spread option on its common stock, while the rest of the proceeds will be used for general purposes, which could include buying back its outstanding 3.75% convertible senior notes due 2008.

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