Violin Memory to price $95 million of five-year convertibles to yield 4%-4.5%, up 25%-30%

By Rebecca Melvin

New York, Sept. 18 – Violin Memory Inc. plans to sell $95 million of five-year convertible senior notes that were talked to yield 4% to 4.5% with an initial conversion premium of 25% to 30%, according to a market source.

A syndicate source said the Rule 144A deal was pricing after the market close Thursday.

Jefferies & Co. is the bookrunner for the offering that has a $15 million greenshoe.

The notes are non-callable for three years and then are provisionally callable if shares exceed 130% of the conversion price.

There is takeover and dividend protection.

Proceeds will be used for general corporate purposes, including working capital and to repay amounts outstanding under the company’s credit agreement with Silicon Valley Bank.

Santa Clara, Calif.-based Violin Memory develops and supplies computer data storage products.

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