By Rebecca Melvin
New York, May 24 - Infinera Corp. priced an upsized $135 million of five-year convertible senior notes at par after the market close Thursday to yield 1.75% with an initial conversion premium of 37.5%, according to a syndicate source.
The Rule 144A deal was initially talked at $100 million in size. Pricing came at the rich end of talk, which was for a 1.75% to 2.25% coupon and a 32.5% to 37.5% premium.
There is a $15 million greenshoe.
The deal was sold via joint bookrunners Morgan Stanley & Co. LLC and Goldman Sachs & Co.
The notes are non-callable with no puts. They will be settled in cash, shares or a combination of cash and shares at Infinera's option, and they have contingent conversion subject to a price hurdle of 130%. The securities also have takeover protection.
Proceeds are expected to be used for general corporate purposes, including working capital and potential strategic projects.
Sunnyvale, Calif.-based Infinera is an optical networking equipment, software and services company.
| Issuer: | Infinera Corp.
|
| Issue: | Convertible senior notes
|
| Amount: | $135 million, upsized from $100 million
|
| Greenshoe: | $15 million
|
| Maturity: | June 1, 2018
|
| Bookrunners: | Morgan Stanley & Co. LLC, Goldman Sachs & Co.
|
| Coupon: | 1.75%
|
| Price: | Par
|
| Yield: | 1.75%
|
| Conversion premium: | 37.5%
|
| Conversion price: | $12.58
|
| Conversion ratio: | 79.4834 shares
|
| Calls: | Non-callable
|
| Puts: | No puts
|
| Net share settlement: | Yes
|
| Contingent conversion: | Yes, at 130%
|
| Takeover protection: | Yes
|
| Price talk: | 1.75%-2.25%, up 32.5%-37.5%
|
| Pricing date: | May 23
|
| Settlement date: | May 30
|
| Stock symbol: | Nasdaq: INFN
|
| Stock reference price: | $9.15
|
| Distribution: | Rule 144A
|
| Market capitalization: | $1.06 billion
|
© 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.
