Oclaro holders exchange all $25 million 7.5% notes for stock, premium

By Marisa Wong

Madison, Wis., Dec. 20 - Oclaro, Inc. announced that holders of all $25 million principal amount of the 7.5% exchangeable senior secured second-lien notes due 2018 issued by indirect wholly owned subsidiary Oclaro Luxembourg SA exercised their right to exchange their notes for shares of Oclaro's common stock.

The exchange rate was 541.7118 common shares per $1,000 principal amount, equivalent to an exchange price of about $1.846 per share. The company said it will issue a total of 13,542,791 shares with cash payable in lieu of fractional shares.

In addition, the exchanging holders were entitled to an interest make-whole premium, which totaled roughly $8.3 million.

"This transaction is another indicator of our recovery as we position Oclaro for a healthy future," chief executive officer Greg Dougherty said in a press release.

"The exchange of this debt to equity is another milestone in Oclaro's recent restructuring efforts. It reinforces to our customers, employees and shareholders that we are executing on efforts to improve our balance sheet, which is now largely debt-free."

Based in San Jose, Calif., Oclaro manufactures optical components, modules and subsystems used in telecommunications, data communications, aerospace and industry.

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