LeCroy to price $60 million 20-year convertibles Thursday, talked at 4%-4.5%, up 20%-25%

By Kenneth Lim

Boston, Oct. 3 - LeCroy Corp. plans to price $60 million of 20-year convertible senior notes, talked at a coupon of 4% to 4.5% and an initial conversion premium of 20% to 25%.

The notes, which are expected to price Thursday after the market closes, will be offered at par.

There is a greenshoe for a further $9 million.

Cowen and Co. is the bookrunner of the Rule 144A offering.

The convertibles will be non-callable for the first five years, with puts in years five, 10 and 15.

There will be a contingent conversion hurdle at 120% of the conversion price.

The convertibles will have dividend and takeover protection.

LeCroy, a Chestnut Ridge, N.Y.-based communications test equipment company, said it will use the proceeds of the deal to repay $32 million of term debt, to buy back up to $10 million of its stock and to partially repay a revolving loan that was drawn down to fund its acquisition of Catalyst Enterprises Inc.

LeCroy said Tuesday that it bought Catalyst, a maker of communications analysis tools, for $30 million in cash and a $3.5 million note.

© 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.