Allen Telecom to sell $50 million convertible preferreds

New York, Feb. 13 - Allen Telecom Inc. is planning an offering of $50 million of series D convertible preferred stock via lead manager Bear, Stearns & Co.

The Beachwood, Ohio wireless equipment company registered the securities in a filing with the Securities and Exchange Commission Wednesday.

Allen Telecom's offering will be one million shares of $50 liquidation preference preferreds due February 2014 with a greenshoe of 150,000 shares or $7.5 million.

Quarterly dividends will be payable in cash or stock or a combination of both.

The dividends are non-cumulative but if a dividend is not declared or not paid then the conversion ratio will increase by 115% of the number of shares that would have been issued if the dividend had been paid in stock.

There is a contingent conversion provision with a 125% threshold after February 2006.

Allen Telecom will use proceeds to pay down debt on its credit facility and may also use some for working capital and other corporate purposes.

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