By Kenneth Lim
Boston, June 24 - Rambus Inc. priced $150 million of five-year convertible senior notes richer than talk at a yield of 5% and an initial conversion premium of 30%.
Price talk was for a yield of 5% to 5.5% and an initial conversion premium of 17.5% to 22.5%. The notes were offered at par.
Credit Suisse Securities (USA) LLC and J.P. Morgan Securities Inc. are the bookrunners of the registered offering. There is an over-allotment option for an additional $22.5 million.
Before March 15, 2014, conversions are subject to a hurdle of 130% of the conversion price.
The notes are non-callable for the first three years, after which they may be called subject to a hurdle at 130% of the conversion price. There are no puts.
There is dividend and takeover protection.
Proceeds will be used for general corporate purposes, which may include financing strategic investments, repaying a zero-coupon convertible due February 2010 and working capital.
Rambus is a Los Altos, Calif.-based designer of chip interface technologies and architectures.
| Issuer: | Rambus Inc.
|
| Issue: | Convertible senior notes
|
| Bookrunners: | Credit Suisse Securities (USA) LLC and J.P. Morgan Securities Inc.
|
| Amount: | $150 million
|
| Greenshoe: | $22.5 million
|
| Maturity: | June 15, 2014
|
| Coupon: | 5%
|
| Price: | Par
|
| Yield: | 5%
|
| Conversion premium: | 30%
|
| Conversion price: | $19.31
|
| Conversion ratio: | 51.8000
|
| Contingent conversion: | 130%
|
| Dividend protection: | Yes
|
| Takeover protection: | Yes
|
| Call protection: | Non-callable before June 15, 2012, then subject to 130% hurdle
|
| Puts: | None
|
| Price talk: | 5%-5.5%, up 17.5%-22.5%
|
| Pricing date: | June 23 after the close
|
| Settlement date: | June 29
|
| Distribution: | Off shelf
|
| Stock symbol: | Nasdaq: RMBS
|
| Reference stock price: | $14.85
|
| Market capitalization: | $1.59 billion
|
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