New Issue: LSI Logic $450 mln convertibles at 4.225% yield, up 41%

By Ronda Fears

Nashville, Tenn., Oct. 25 - LSI Logic Corp. sold $450 million of five-year convertible subordinated notes at 99 to yield 4.225% with a 41% initial conversion premium, via lead manager Lehman Brothers, in an unexpected overnight Rule 144A deal. The Milpitas, Calif.-based chipmaker said it would use $200 million of the proceeds to repay its credit revolver, and the balance toward general corporate purposes, including working capital and capital expenditures.

Terms of the new deal are:

Issuer: LSI Logic Corp.

Amount: $450 million

Greenshoe: $67.5 million

Lead Manager: Lehman Brothers

Maturity Date: Oct. 30, 2006

Coupon: 4.0%

Issue Price: par

Yield: 4.225%

Conversion Premium: 41%

Conversion Price: $26.339

Conversion Ratio: 37.9665

Settlement Date: Oct. 30

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