New Issue: RadiSys prices $50 million 2.75% convertible senior notes due 2013, up 27%

By Evan Weinberger

New York, Feb. 7 - RadiSys Corp. priced $50 million in 2.75% convertible senior notes due Feb. 15, 2013 with a 27% initial conversion premium Thursday after market close.

The deal came in at the rich end of talk, which had been for a 2.75% to 3.25% coupon and a 23% to 27% initial conversion premium.

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

There is a $5 million over-allotment option.

The settlement date is expected to be Feb. 12.

The conversion price is $13.03 and the conversion ratio is 76.7448.

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. These will raise the effective conversion price from the company's point of view to $23.085, a premium of 125%.

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.

Issuer: RadiSys Corp.

Issue: Convertible senior notes

Amount: $50 million

Greenshoe: $5 million

Maturity: Feb. 15, 2013

Coupon: 2.75%

Price: Par

Yield: 2.75%

Conversion premium: 27%

Conversion price: $13.03

Conversion ratio: 76.7448

Bookrunner: Credit Suisse

Pricing date: Feb. 6

Settlement date: Feb. 12

Talk: 2.75%-3.25% coupon, 23%-27% initial conversion premium

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