By Rebecca Melvin
New York, Feb. 13 – Oclaro Inc. priced $55 million of five-year convertible senior notes at par to yield 6% with an initial conversion premium of 33.6% on Thursday, according to a news release.
The Rule 144A notes priced at the midpoint of 5.75% to 6.25% coupon talk and beyond the rich end of premium talk, which was 25% to 30%.
Jefferies & Co. was the bookrunner of the deal, which has a $10 million greenshoe.
If the notes are convertible before Feb. 15, 2018, investors will receive the present value of the remaining interest payments.
The bonds are non-callable for three years and then provisionally callable if shares exceed 130% of the conversion price. There is dividend and takeover protection.
Proceeds are earmarked for general corporate purposes, including working capital.
San Jose, Calif.-based Oclaro makes optical components, modules and subsystems used in telecommunications, data communications, aerospace and industry.
| Issuer: | Oclaro Inc.
|
| Issue: | Convertible senior notes
|
| Amount: | $55 million
|
| Greenshoe: | $10 million
|
| Maturity: | Feb. 15, 2020
|
| Bookrunner: | Jefferies & Co.
|
| Coupon: | 6%
|
| Price: | Par
|
| Yield: | 6%
|
| Conversion premium: | 33.6%
|
| Conversion price: | $1.95
|
| Conversion ratio: | 512.8205 shares
|
| Calls: | Non-callable until Feb. 15, 2018, then provisionally callable until year seven at 130% price hurdle
|
| Takeover protection: | Yes
|
| Dividend protection: | Yes
|
| Pricing date: | Feb. 12
|
| Distribution: | Rule 144A
|
| Price talk: | 5.75%-6.25%, up 25%-30%
|
| Stock symbol: | Nasdaq: OCLR
|
| Stock reference price: | $1.46 as of close Feb. 12
|
| Market capitalization: | $163.53 million
|
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