Verint Systems to price $300 million seven-year convertibles to yield 1.75%-2.25%, up 30%-35%

By Rebecca Melvin

New York, June 9 – Verint Systems Inc. launched an offering of $300 million of seven-year convertibles late Monday that were talked to yield 1.75% to 2.25% with an initial conversion premium of 30% to 35%, according to a syndicate source. Pricing was expected to occur Thursday after the market close.

Verint is also pricing 5 million shares of common stock. The two offerings are not contingent upon each other.

The note offering has a $45 million greenshoe and was being sold via joint bookrunners Deutsche Bank Securities Inc., Credit Suisse Securities (USA) LLC, RBC Capital Markets LLC, Barclays, Goldman Sachs & Co. and HSBC Securities (USA) Inc.

The notes are non-callable. They are convertible if shares exceed 130% of the conversion price for a specified period.

Proceeds of both the notes and stock offerings will be used to repay amounts outstanding under the company’s existing credit facility. Proceeds will also be used to fund the net cost of convertible note hedge and warrant transactions, or a call spread, that are being transacted in conjunction with the notes.

Melville, N.Y.-based Verint is a software and hardware analytics company, providing security, surveillance and business intelligence.

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