By Ronda Fears
Nashville, July 14 - Powerwave Technologies Inc. sold $130 million of five-year convertible notes at par to yield 1.25% with a 32% initial conversion premium, via lead manager Deutsche Bank Securities.
Holders will have dividend protection through a conversion ratio adjustment.
The company said it would use proceeds to fund the purchase of around $25 million of common stock simultaneously with the issue and to increase financial flexibility for possible future acquisitions and for general corporate purposes.
Terms of the new deal are:
Issuer: Powerwave Technologies Inc.
| Issue: | Convertible notes
|
| Lead managers: | | Deutsche Bank Securities
|
| Amount | $130 million
|
| Greenshoe: | $20 million
|
| Maturity: | July 15, 2008
|
| Coupon: | 1.25%
|
| Price: | Par
|
| Yield: | 1.25%
|
| Conversion premium: | 32%
|
| Conversion price: | $10.49
|
| Conversion ratio: | 95.3289
|
| Call: | Non-callable for 4 years, then with 130% hurdle
|
| Price talk: | 1.25, up 32%
|
| Pricing date: | July 14, after the close
|
| Settlement: | July 18
|
| Distribution: | Rule 144A
|
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