By Rebecca Melvin
New York, Dec. 11 - Finisar Corp. priced an upsized $225 million of 20-year convertible senior notes at par after the market close Tuesday to yield 0.5% with an initial conversion premium of 40%, according to a syndicate source.
The Rule 144A offering was initially talked at $200 million in size. The deal also has a $33.75 greenshoe, which was upsized from $30 million. Pricing came at price points that were fixed when the deal was launched.
BofA Merrill Lynch was the bookrunner; there were no co-managers.
The bonds have contingent conversion if shares exceed 130% of the conversion price and also net share settlement.
The securities are non-callable until Dec. 22, 2018, with puts on Dec. 15, 2018, Dec. 15, 2023 and Dec. 15, 2028. There is also a change-of-control put.
Proceeds will be used for general corporate purposes, including working capital, and a portion of the proceeds may be used to acquire complementary businesses, products or technologies, although Finisar has no present commitments related to acquisitions.
Finisar is a Sunnyvale, Calif.-based maker of fiber optic subsystems.
| Issuer: | Finisar Corp.
|
| Issue: | Convertible senior notes
|
| Amount: | $225 million, upsized from $200 million
|
| Greenshoe: | $33.75 million, upsized from $30 million
|
| Maturity: | Dec. 15, 2033
|
| Bookrunner: | BofA Merrill Lynch
|
| Coupon: | 0.5%
|
| Price: | Par
|
| Yield: | 0.5%
|
| Conversion premium: | 40%
|
| Conversion price: | $30.18
|
| Conversion ratio: | 33.1301 shares
|
| Contingent conversion: | Yes, at 130%
|
| Calls: | Non-callable until Dec. 22, 2018
|
| Puts: | On Dec. 15, 2018, Dec. 15, 2023 and Dec. 15, 2028
|
| Price talk: | 0.5%, up 40%
|
| Pricing date: | Dec. 10
|
| Settlement date: | Dec. 16
|
| Stock symbol: | Nasdaq: FNSR
|
| Stock reference price: | $21.56 at close Dec. 10
|
| Distribution: | Rule 144A
|
| Market capitalization: | $2.07 billion
|
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