By Kenneth Lim
Boston, March 29 - RF Micro Devices Inc. priced an upsized $350 million of five- and seven-year convertible subordinated notes at the rich end of talk on Thursday after the market closed. The five-year series was set at a coupon of 0.75% while the seven-year notes were set at a coupon of 1%. The initial conversion premium for both is 27.5%.
The $175 million five-year tranche had been talked at a coupon of 0.75% to 1.25% and an initial conversion premium of 22.5% to 27.5%. The equally sized seven-year tranche had been talked at a coupon of 1% to 1.5% and the same initial conversion premium range.
The notes were offered at par.
The size of each series was originally $150 million. The over-allotment option remains at an additional $25 million for each tranche.
Merrill Lynch was the bookrunner for the Rule 144A offering.
The convertibles are non-callable.
There is a contingent conversion trigger at 120% of the conversion price for both series.
The notes have dividend and takeover protection.
RF Micro Devices, a Greensboro, N.C.-based maker of radio frequency components, said the proceeds of the deal will be used for general purposes, which include working capital, potential acquisitions and future stock repurchases.
| Issuer: | RF Micro Devices Inc.
|
| Issue: | Convertible subordinated notes
|
| Bookrunner: | Merrill Lynch
|
| Pricing date: | March 29 after the close
|
| Settlement date: | April 4
|
| Distribution: | Rule 144A
|
|
|
| Five-year tranche
|
| Amount: | $175 million
|
| Greenshoe: | $25 million
|
| Maturity: | April 15, 2012
|
| Coupon: | 0.75%
|
| Price: | Par
|
| Yield: | 0.75%
|
| Conversion premium: | 27.5%
|
| Conversion price: | $8.05
|
| Conversion ratio: | 124.2969
|
| Contingent conversion: | 120%
|
| Dividend protection: | Yes
|
| Takeover protection: | Yes
|
| Call protection: | Non-callable
|
| Puts: | None
|
| Price talk: | 0.75%-1.25%, up 22.5%-27.5%
|
|
|
| Seven-year tranche
|
| Amount: | $175 million
|
| Greenshoe: | $25 million
|
| Maturity: | April 15, 2014
|
| Coupon: | 1%
|
| Price: | Par
|
| Yield: | 1%
|
| Conversion premium: | 27.5%
|
| Conversion price: | $8.05
|
| Conversion ratio: | 124.2969
|
| Contingent conversion: | 120%
|
| Dividend protection: | Yes
|
| Takeover protection: | Yes
|
| Call protection: | Non-callable
|
| Puts: | None
|
| Price talk: | 1%-1.5%, up 22.5%-27.5%
|
|
|
|
|
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