VeriSign to price $1.1 billion convertible debentures due 2037 talked at 2.75%-3.25% coupon, up 20% to 22.5%

By Evan Weinberger

New York, Aug. 13 - VeriSign Inc. plans to offer $1.1 billion in junior subordinated convertible debentures due 2037. The convertibles are talked at a coupon of 2.75% to 3.25% and an initial conversion premium of 20% to 22.5% and are expected to price Tuesday.

JPMorgan is the bookrunner of the Rule 144A transaction. There is a $200 million over-allotment option. The bonds are expected to be offered at par.

The bonds are non-callable for the first 10 years and there are no put options.

There is contingent conversion subject to a 130% hurdle. The parity trigger is 98%. There is takeover protection and one-way dividend protection.

The contingent interest is 50 basis points after seven years if the market price is greater than 150. After seven years, the contingent interest is 25 bps if the price is less than 50.

VeriSign is a Mountain View, Calif.-based voice and data network services provider. The company plans to use the proceeds for a stock

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