RadiSys launches $50 million convertible senior notes; talked at 2.75%-3.25% coupon, up 23%-27%

By Evan Weinberger

New York, Feb. 5 - RadiSys Corp. launched $50 million in convertible senior notes due Feb. 15, 2013 on Tuesday after the market close. The coupon is talked at 2.75% to 3.25% and the initial conversion premium is talked at 23% to 27%.

Credit Suisse is the bookrunner on the Securities and Exchange Commission registered transaction.

The deal is expected to price Wednesday after the market close.

There is a $5 million over-allotment option.

There are no calls or puts.

The convertibles carry standard dividend and takeover protections.

RadiSys and an affiliate of Credit Suisse will enter into a capped call transaction intended to reduce dilution of RadiSys stock upon conversion. The affiliate will then enter into hedge transactions.

RadiSys is a Hillsboro, Ore.-based computer systems producer. The company plans to use the proceeds for general corporate purposes, which may include buying back a portion of its existing convertible senior notes due 2023. A portion of the proceeds will go toward the costs of the capped call transaction.

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