Network Equipment launches $85 million convertibles due 2014 at 3.25%-3.75% coupon, up 27.5%-32.5%

By Evan Weinberger

New York, Dec. 11 - Network Equipment Technologies, Inc. launched $85 million in convertible senior notes due Dec. 15, 2014 on Tuesday after the market close talked at a 3.25% to 3.75% coupon and a 27.5% to 32.5% initial conversion premium.

Bear Stearns is the bookrunner of the Rule 144A transaction.

There is a $20 million over-allotment option.

The deal was expected to price Wednesday after the market close.

The convertibles have call protection through maturity.

There are full takeover and dividend protections.

Network Equipment Technologies is a Fremont, Calif.-based voice and data communications equipment producer. The company plans to use the proceeds for working capital and general corporate purposes, which may include capital expenditures and potential acquisitions.

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