By Rebecca Melvin
New York, Sept. 19 – Violin Memory Inc. sold an upsized $105 million of five-year convertible senior notes at par after the market close Thursday to yield 4.25% with an initial conversion premium of 27.5%, according to a release.
Pricing came at the midpoint of talk for a 4% to 4.5% coupon and 25% to 30% premium.
Initially the Rule 144A deal was seen at $95 million in size. There is a $15 million greenshoe for the offering.
Jefferies & Co. was the bookrunner.
The notes are non-callable for three years until Oct. 17, 2017 and are then provisionally callable if the underlying 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 repayment of all 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.
| Issuer: | Violin Memory Inc.
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| Issue: | Convertible senior notes
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| Amount: | $105 million, upsized from $95 million
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| Greenshoe: | $15 million
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| Maturity: | Oct. 1, 2019
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| Bookrunner: | Jefferies & Co.
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| Coupon: | 4.25%
|
| Price: | Par
|
| Yield: | 4.25%
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| Conversion premium: | 27.5%
|
| Conversion price: | $5.62 per share
|
| Conversion ratio: 177.8489 shares
|
| Call: | Non-callable until Oct. 17, 2017, then provisionally callable subject to 130% price hurdle
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| Takeover protection: | Yes
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| Dividend protection: | Yes
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| Pricing date: | Sept. 18
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| Settlement date: | Sept. 24
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| Price talk: | 4%-4.5%, up 25%-30%
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| Stock symbol: | Nasdaq: VMEM
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| Stock reference price: | $4.41 at close on Sept. 18
|
| Distribution: | Rule 144A
|
| Market capitalization: | $428.98 million
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