LeCroy prices $60 million convertibles to yield 4%, up 25%

New York, Oct. 5 - LeCroy Corp. priced a $60 million offering of 20-year convertible senior notes after the close Thursday to yield 4% with a 25% initial conversion premium.

The deal came at the rich end of talk which put the coupon at 4% to 4.5% and the initial conversion premium at 20% to 25%.

The conversion price is $14.55 and the conversion ratio 68.7285.

There is a greenshoe for a further $12 million.

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

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

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

The convertibles 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.

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