Nuance adjusts conversion rates for four series of convertible notes

By Sarah Lizee

Olympia, Wash., Oct. 16 – Nuance Communications, Inc. adjusted the conversion rates of four series of its convertible notes, according to a notice.

The conversion rates were adjusted as follows:

• For the 1% senior convertible debentures due 2035, 41.4576 shares per $1,000 principal amount from 36.7360 per $1,000 principal amount previously;

• For the 1.25% senior convertible notes due 2025, 50.7957 shares per $1,000 principal amount from 45.0106 shares per $1,000 principal amount previously;

• For the 1.5% senior convertible debentures due 2035, 48.5216 shares per $1,000 principal amount from 42.9978 shares per $1,000 principal amount previously; and

• For the 2.75% senior convertible debentures due 2031, 34.9385 shares per $1,000 principal amount from 30.961 shares per $1,000 principal amount previously.

Nuance is adjusting the conversion rates due to the completion of the distribution, as a dividend, of all of the common stock of Cerence Inc. held by Nuance to holders of Nuance’s common stock as of 5 p.m. ET on Sept. 17.

In the spinoff, holders of Nuance common stock as of Sept. 17 received one share of Cerence common stock for every eight shares of Nuance common stock held as of Sept. 17. The spinoff was effected at 5 p.m. ET on Oct. 1.

The conversion rate adjustments became effective on Oct. 2 for the 1.5% and 2.75% convertibles and on Oct. 15 for the 1% and 1.25% convertibles.

The convertibles may be settled in cash or a combination of cash and Nuance common stock.

The issuer is a Burlington, Mass.-based provider of voice and language software.

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