Nashville, July 29 - Veritas Software Corp. sold $500 million of 10-year convertible notes at par to yield 0.25% with a 55% initial conversion premium via sole bookrunner Goldman Sachs & Co.
The deal came at the cheap of guidance which put the yield at 0.25% with a conversion premium between 50% and 55%.
Holders will have dividend protection by way of a conversion ratio adjustment.
Veritas said it will use up to $250 million of proceeds to repurchase stock from purchasers of the new convertibles. Remaining proceeds will be used to redeem its outstanding 5.25% convertible due 2004 and 1.856% convertible due 2006 and for general corporate purposes.
Terms of the new deal are:
Issuer: Veritas Software Corp.
| Issue: | Convertible subordinated notes
|
| Lead manager: | | Goldman Sachs
|
| Amount | $500 million
|
| Greenshoe: | $100 million
|
| Maturity: | Aug. 1, 2013
|
| Coupon: | 0.25%
|
| Price: | Par
|
| Yield: | 0.25%
|
| Conversion premium: | 50%
|
| Conversion price: | $46.13
|
| Conversion ratio: | 21.6802
|
| Contingent conversion: | 120%
|
| Call: | Non-callable for 3 years
|
| Put: | In years 3 and 5
|
| Price talk: | 0.25%, up 50-55%
|
| Pricing date: | July 29, before the open
|
| Settlement: | Aug. 1
|
| Distribution: | Rule 144A
|
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