Oclaro greenshoe exercised, 6% convertible sale lifted to $65 million

By Tali Rackner

Norfolk, Va., Feb. 19 – Underwriters for Oclaro, Inc.’s 6% convertible senior notes due Feb. 15, 2020 exercised their over-allotment option in full, raising an additional $10 million, according to a press release.

The company priced $55 million of the five-year convertibles on Feb. 13.

As previously reported, Jefferies & Co. was the bookrunner of the deal.

Prior to Feb. 15, 2018, if Oclaro's common stock closes above the conversion price for 20 or more trading days in a period of 30 consecutive trading days ending within five trading days immediately prior to the date Oclaro receives a conversion notice, 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.

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