Finisar $100 million convertible talked at 2.5-3.0% yield, up 22.5-27.5%

By Ronda Fears

Nashville, Oct. 7 - Finisar Corp. is returning to the convertible market, having launched $100 million of seven-year convertible notes talked to yield 2.5% to 3.0% with a 22.5% to 27.5% initial conversion premium for Wednesday's business.

Merrill Lynch & Co. is bookrunner of the Rule 144A deal.

Coupon payments for the first four years will be collateralized with U.S. Treasuries.

The subordinated notes will be non-callable for four years, then with a 150% hurdle. There is also a put in year four.

Holders will have dividend protection by way of a conversion ratio adjustment.

There is a $15 million greenshoe available.

After purchasing the Treasuries, Finisar said it will use a portion of proceeds to repurchase some of its outstanding 5.25% convertible subordinated notes due 2008.

Remaining proceeds will be used for general corporate purposes, including working capital. The company said it also may use a portion of proceeds for acquisitions, although it currently has no firm plans along those lines.

Sunnyvale, Calif.-based Finisar designs, manufactures and markets digital fiber-optic subsystems and network monitoring systems for high-speed data communications over local area networks.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.