Sybase to issue cash, shares for $390 million of 1.75% convertibles

By Jennifer Chiou

New York, March 5 - Sybase, Inc. said that holders of about $390 million of its $413.7 million of 1.75% convertible subordinated notes due 2025 opted to convert their securities ahead of the March 3 redemption date.

Sybase added that it will pay in cash 50% of the daily share amount while the balance will be settled in shares of Sybase common stock.

Additionally, the company's board of directors has approved the repurchase of up to an additional $150 million of Sybase's common stock and convertibles.

The Dublin, Calif.-based wireless software company called the notes on Feb. 1, stating that it would buy back the notes at a redemption price of par plus accrued interest up to but excluding the redemption date. The interest was to be equal to $0.4375 per $1,000 in notes.

The company said it previously used cash to fund the repurchase, redemption or conversion of roughly $70 million of the notes that were part of the original 2005 issue.

Sybase's shares closed at $44.41 each on March 5.

U.S. Bank NA (213 615-6043) was the conversion and paying agent.

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