New Issue: RF Micro Devices $200 million convertibles at 1.5% yield, up 32%

By Ronda Fears

Nashville, June 26 - RF Micro Devices Inc. sold $200 million of seven-year convertibles at par to yield 1.5% with a 32% initial conversion premium, via sole lead manager Merrill Lynch. It priced at the wide end of yield guidance and cheaply outside premium talk.

The company, which makes circuits for wireless communications products, said proceeds would be used for working capital and general corporate purposes, including to possibly retire long-term debt.

Terms of the deal are:

Issuer: RF Micro Devices Inc.

Issue:	Rule 144A convertible subordinated notes
Lead manager:		Merrill Lynch
Amount	$200 million
Greenshoe:	$30 million
Maturity:	July 1, 2010
Dividend:	1.5%
Price:	par
Yield:	1.5%
Conversion premium:	32%
Conversion price:	$7.63
Conversion ratio:	131.0685
Call:	noncallable for 5 years
Price Talk:	1.0-1.5%, up 42.5-47.5%
Pricing Date:	June 25, after the close
Settlement:	July 1

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