By Reshmi Basu
New York, Dec. 13 - Network Equipment Technologies, Inc. priced $85 million of 3.75% senior notes due 2014 with a 27.5% initial conversion premium after the close Wednesday.
The deal came at the cheap end of talk, which had been for a 3.25% to 3.75% coupon and a 27.5% to 32.5% initial conversion premium.
Bear Stearns was the bookrunner of the Rule 144A transaction.
The initial conversion price is $13.63.
There is a $20 million over-allotment option.
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.
Issuer: Network Equipment Technologies, Inc.
Amount: $85 million
| Greenshoe: | $20 million
|
| Issue: | Senior notes
|
| Maturity: | 2014
|
| Coupon: | 3.75%
|
| Conversion premium: | 27.5%
|
| Conversion price: | $13.63
|
| Bookrunner: | Bear Stearns
|
| Pricing date: | Dec. 12, after close
|
| Distribution: | Rule 144A
|
| Talk: | 3.25% to 3.75% coupon, 27.5% to 32.5% initial conversion premium
|
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