Finisar increases consideration in $95 million exchange offer for 2.5% convertibles

By Jennifer Chiou

New York, July 16 - Finisar Corp. announced that it lifted the exchange consideration in its offer to issue common stock and cash for up to $95 million total of its $50 million of 2.5% convertible subordinated notes due 2010 and its $92 million of 2.5% convertible senior subordinated notes due 2010.

Finisar is offering to exchange up to $37.5 million, or 75%, of the subordinated notes and up to $57.5 million, or 62.5%, of the senior subordinated notes.

The company first announced the offers on July 9.

For each $1,000 principal amount, tendering holders will now receive a total consideration of not greater than $870 nor less than $820, increased from a range of $700 to $750. The cash portion of the exchange consideration remains unchanged at $525 and is limited to $50 million under the terms of the modified Silicon Valley Bank credit facilities.

The share portion of the consideration will be determined using the volume-weighted average price during the five-date trading period from July 16 to and including July 22, changed from the eight-day trading period from July 13 to and including July 22.

The offers will end at 5 p.m. ET on Aug. 6.

The company said it will accept notes for exchange in excess of the cap on a pro rata basis.

The company also announced that it has completed the sale of its network tools division for $40.6 million in cash to JDS Uniphase Corp. and has finalized previously announced modifications of its existing credit facilities with Silicon Valley Bank, which removes a condition to its obligation to complete the exchange offers.

Proceeds from the asset sale will be available to fund a portion of the exchange consideration.

Finisar said it is looking to reduce its debt.

Piper Jaffray & Co. is the information agent (800 322-2285).

Sunnyvale, Calif.-based Finisar designs, manufactures and markets digital fiber-optic subsystems and network monitoring systems for high-speed data communications over local area networks.

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