Ribbon Communications withdraws $150 million convertibles offering, cites market conditions

By Abigail W. Adams

Portland, Me., Nov. 13 – Ribbon Communications Inc., citing market conditions, has withdrawn its $150 million offering of five-year convertible notes, according to a company news release.

The deal had been initially scheduled to price after the market close on Tuesday.

Price talk had been for a coupon of 2.25% to 2.75% and an initial conversion premium of 27.5% to 32.5%, according to a market source.

J.P. Morgan Securities LLC and Jefferies LLC were bookrunners for the Rule 144A offering, which carried a greenshoe of $25 million.

Proceeds were to be used to cover the cost of the call spread, to repay a promissory note to certain stockholders, to repay the outstanding amounts under its secured credit facility and for general corporate purposes.

“The company believes that current market conditions are not conducive for an offering on terms that would be in the best interests of the company’s stockholders,” it said in the press release.

Ribbon Communications stock dropped as much as 25% in intraday trading on Tuesday but pared its losses to close the day at $6.20, a decrease of 6.49%.

Ribbon Communications is a Westford, Mass.-based security and software solutions company.

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