JDS Uniphase $400 million overnight convertible seen at 0% yield, up 37.6%

By Ronda Fears

Nashville, Oct. 27 - JDS Uniphase Corp. was in the overnight market pricing $400 million of seven-year convertible notes at par to yield 0% with a 37.6% initial conversion premium via lead manager Morgan Stanley, according to market sources.

Market sources, however, said it was being reoffered below par.

The seven-year senior notes will be non-callable for five years, with a put in year five.

Also, there will be a 110% contingent conversion trigger.

There is a $75 million greenshoe available.

JDS Uniphase said proceeds would be used for general corporate purposes, including research and development and working capital. The fiber optics concern also said it may use proceeds for potential acquisitions.

The common stock closed Monday off 1.6c, or 0.44%, to $3.584 but were about 6.5% lower in after-hours trading.

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