Powerwave launches $130 million convertible subordinated notes due 2027, talked at 3.875% coupon, up 30%

By Evan Weinberger

New York, Sept. 18 - Powerwave Technologies, Inc. said Tuesday it plans to sell $130 million in convertible subordinated notes due 2027 talked at a coupon of 3.875% with an initial conversion premium of 30%.

The convertibles are being talked at a reoffer price of 98.5 to 99.5.

The deal is expected to price Wednesday before the market open.

Deutsche Bank is the bookrunner of the Rule 144A transaction.

There is a $20 million over-allotment option.

Settlement is expected to be Sept. 24.

The convertibles will have a soft call after six years subject to a 130% hurdle and a hard call at seven years. There are puts at years seven, 10 and 15. The convertibles have dividend protections and a make-whole agreement.

Powerwave is a Santa Ana, Calif.-based wireless communications networks services provider.

The company plans to use the proceeds for working capital and general corporate purposes, including paying back existing debt. In its statement, Powerwave raised the possibility of buying back a portion of its existing 1.25% convertible subordinated notes due 2008.

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