VeriFone talks $275 million five-year convertibles at 0.875%-1.375%, up 20%-25%, to price Monday

By Kenneth Lim

Boston, June 18 - VeriFone Holdings Inc. planned to price $275 million of five-year convertible senior notes on Monday after the market closed, talked at a coupon of 0.875% to 1.375% and an initial conversion premium of 20% to 25%.

The convertibles were offered at par.

There is an over-allotment option for a further $41.25 million.

Lehman Brothers and JPMorgan are the bookrunners of the Rule 144A offering.

The convertibles are non-callable and may not be put.

There is a contingent conversion trigger at 130% of the conversion price.

The convertibles have dividend and takeover protection.

There is a net-share settlement option.

VeriFone, a San Jose, Calif.-based provider of electronic payment systems, said it will use the proceeds to fund convertible note hedge and warrant transactions and to partly repay senior secured bank debt of VeriFone Inc., VeriFone's principal operating subsidiary.

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