VeriSign prices $1.1 billion convertible debentures to yield 3.25%, up 20%

New York, Aug. 14 - VeriSign, Inc. priced $1.1 billion in junior subordinated convertible debentures due 2037 with a 3.25% coupon and a 20% initial conversion premium.

The deal, priced after the close Tuesday, came at the cheap end of talk, which put the coupon at 2.75% to 3.25% and the initial conversion premium at 20% to 22.5%.

The conversion price is $34.3680 and the conversion ratio 29.0968.

JPMorgan is the bookrunner of the Rule 144A transaction. There is a $200 million over-allotment option.

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 to buy back stock and for general corporate purposes.

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