TiVo plans $200 million seven-year convertibles to yield 1.75%-2.25%, up 30%-35%

By Rebecca Melvin

New York, Sept. 15 – TiVo Inc. plans to price $200 million of seven-year convertible senior notes after the market close Tuesday that were talked at a 1.75% to 2.25% coupon and a 30% to 35% initial conversion premium, according to a market source.

The Rule 144A deal has a $30 million greenshoe and was being sold via bookrunners Barclays and Deutsche Bank Securities Inc.

Proceeds are earmarked for general corporate purposes, including share repurchases, including the immediate repurchase of up to $50 million shares of common stock, and to fund the net cost of a call spread.

Concurrently with the deal, the company plans to enter into convertible note hedge and warrant transactions, or a call spread, which boosts the initial conversion premium from the issuer’s perspective.

The bonds are non-callable for life with no puts. There is takeover and dividend protection, and settlement will be made in cash and shares.

TiVo is an Alviso, Calif.-based provider of technology and services for digital video recorders.

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