Verisign to pay contingent interest on 3.25% convertibles on Feb. 15

By Angela McDaniels

Tacoma, Wash., Aug. 18 – VeriSign, Inc. will pay contingent interest on its 3.25% junior subordinated convertible debentures due 2037 for the six months ending Feb. 14, according to a company news release.

The upside trigger for contingent interest was met for the six-month interest payment period from Aug. 15 to Feb. 14.

The contingent interest amount is $4.1806 per $1,000 principal amount, or about $5.2 million in total for the $1.25 billion outstanding principal amount of convertibles. It will be paid on Feb. 15 to holders of record as of Feb. 1.

According to the prospectus for the convertibles, this is the first interest period in which holders are eligible to receive contingent interest.

Contingent interest accrues during any semiannual interest period where the average trading price of a debenture for the 10 trading days immediately preceding the first day of that semiannual period is greater than or equal to $1,500 per $1,000 principal amount, in which case the contingent interest rate is 0.5% of the average trading price per year, or is less than or equal to $500 per $1,000 principal amount, in which case the contingent interest rate is 0.25% of the average trading price per year.

Beginning Aug. 15, 2021, the $500 threshold will increase over time.

Verisign is an internet infrastructure services provider based in Reston, Va.

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