By Evan Weinberger
New York, Sept. 19 - Powerwave Technologies, Inc. priced $130 million in 3.875% convertible subordinated notes due Oct. 1, 2027 with a 30% initial conversion premium Wednesday before market open.
The convertibles were reoffered at 98.5, at the cheap end of talk for a reoffer price of 98.5 to 99.5. The coupon and conversion premium matched the expected levels.
There is a $20 million over-allotment option, which has already been exercised.
Deutsche Bank is the bookrunner of the Rule 144A transaction.
The conversion price was set at $8.71.
The convertibles will have a soft call beginning Oct. 8, 2013 subject to a 130% hurdle and a hard call beginning Oct. 8, 2014. There are puts in 2014, 2017 and 2022. 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 indebtedness. In its statement, Powerwave raised the possibility of buying back a portion of its existing 1.25% convertible subordinated notes due 2008.
Issuer: Powerwave Technologies, Inc.
Issue: Convertible subordinated notes
Amount: $130 million
Greenshoe: $20 million
Maturity: Oct. 1, 2027
Coupon: 3.875%
Price: 98.5
Yield: 3.875%
Conversion premium: 30%
Conversion price: $8.71
Call: Soft call beginning Oct. 8, 2013 subject to 130% hurdle; hard call beginning Oct. 8, 2014
| Put: | Oct. 8 in each of 2014, 2017, and 2022
|
| Bookrunner: | Deutsche Bank
|
| Distribution: | Rule 144A
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| Settlement: | Sept. 24
|
| Talk: | Reoffer price of 98.5 to 99.5
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