By Stephanie N. Rotondo
Phoenix, Nov. 13 - Emulex Corp. priced an upsized $150 million of 1.75% five-year convertible senior notes at par on Wednesday, the company said in a press release.
The Rule 144A deal was upsized from an expected $125 million.
Goldman Sachs & Co. was the sole initial purchaser and will resell to qualified institutional buyers.
The initial conversion rate is 97.1322 shares of common stock per each $1,000 of notes. That equals an initial conversion rate price of $10.30 per share, a 32.5% premium over Tuesday's closing share price of $7.77.
The notes can be converted under certain circumstances prior to the close of business on the business day immediately preceding Aug. 15, 2018. The notes are convertible at anytime after that date up to the maturity date.
Proceeds are intended for general corporate purposes, including repurchases of common stock.
Costa Mesa, Calif.-based Emulex is focused on network connectivity, monitoring and management for global networks that support enterprise, cloud, government and telecommunications.
| Issuer: | Emulex Corp.
|
| Securities: | Convertible senior notes
|
| Amount: | $150 million, increased from $125 million
|
| Greenshoe: | $25 million
|
| Maturity: | Nov. 15, 2018
|
| Bookrunner: | Goldman Sachs & Co.
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| Coupon: | 1.75%
|
| Price: | Par of $1,000
|
| Yield: | 1.75%
|
| Conversion premium: | 32.5%
|
| Conversion price: | $10.30 per share
|
| Conversion rate: | 97.1322 shares per $1,000 of notes
|
| Pricing date: | Nov. 13
|
| Stock listing: | NYSE: ELX
|
| Stock price: | $7.77 as of Nov. 12 close
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