Radisys $75 million convertible talked at 1.375-1.875% yield, up 23-27%

By Ronda Fears

Nashville, Nov. 12 - Radisys Corp. launched $75 million of 20-year convertible notes talked to yield 1.375% to 1.875% with a 23% to 27% initial conversion premium for pricing expected after the close Thursday.

Credit Suisse First Boston and Banc of America Securities are joint bookrunners of the Rule 144A deal.

The senior notes will be noncallable for three years, then for two years with a 130% hurdle. There are puts in years five, 10 and 15. Too, there is a 120% contingent conversion trigger.

Holders will have full dividend protection.

There is a $25 million greenshoe available.

The Hillsboro, Ore.-based computer networking firm said proceeds would be used for general corporate purposes, including working capital and potential acquisitions.

Radisys shares closed up 88 cents, or 4.35%, to $21.10 but were off by 69 cents, or 3.27%, in after-hours trading.

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