Nashville, Nov. 14 - Radisys Corp. sold $75 million of 20-year convertible notes at par to yield 1.375% with a 27% initial conversion premium via joint bookrunners Credit Suisse First Boston and Banc of America Securities.
The Rule 144A deal sold at the aggressive end of price talk of 1.375% to 1.875%, up 23% to 27%.
Holders will have full dividend protection.
The Hillsboro, Ore.-based computer-networking firm said proceeds would be used for general corporate purposes, including working capital and potential acquisitions.
Late in the day Friday, Radisys announced that the greenshoe had been exercised in full, bringing the size of the deal to $100 million.
Terms of the deal are:
| Issuer: | Radisys Corp.
|
| Issue: | Convertible senior notes
|
| Lead managers: | Credit Suisse First Boston and Banc of America Securities
|
| Amount: | $75 million
|
| Greenshoe: | $25 million
|
| Maturity: | Nov. 15, 2023
|
| Coupon: | 1.375%
|
| Price: | Par
|
| Yield: | 1.375%
|
| Conversion premium: | 27%
|
| Conversion price: | $23.5712
|
| Conversion ratio: | 42.4247
|
| Contingent conversion: | 120%
|
| Call: | Non-callable for 3 years, then with 130% hurdle for 2 years
|
| Put: | In years 5, 10 and 15
|
| Price talk: | 1.375-1.875%, up 23-27%
|
| Pricing date: | Nov. 13, after the close
|
| Settlement date: | Nov. 19
|
| Distribution: | Rule 144A
|
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