By Abigail W. Adams
Portland, Me., Dec. 1 – Applied Optoelectronics Inc. priced an upsized $80.2 million of three-year convertible notes after the market close on Thursday with a coupon of 5.25% and an initial conversion premium of 15%, according to a company news release and a market source.
Raymond James & Associates was sole bookrunner for the Rule 144A offering.
The notes are non-callable until Dec. 15, 2024 and then subject to a 130% hurdle.
They are putable upon a fundamental change.
The notes will be settled in cash, shares or a combination of both.
Net proceeds are expected to be $76 million.
Proceeds will be used to repurchase or exchange the company’s 5% convertible notes due March 15, 2024 for a combination of cash and stock in privately negotiated transactions.
Specifically, the company entered into privately negotiated transactions to repurchase $80.2 million in principal of the company’s 5% convertible notes due 2024 for $81.1 million in cash and 466,368 shares.
The company said it may engage in additional exchanges or repurchases or induce conversion of the 5% notes following the completion of the new offering.
Applied Optoelectronics is a Sugar Land, Tex.-based advanced optical products developer and manufacturer.
| Issuer: | Applied Optoelectronics Inc.
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| Amount: | $80.2 million
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| Issue: | Convertible senior notes
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| Maturity: | Dec. 15, 2026
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| Bookrunner: | Raymond James & Associates
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| Coupon: | 5.25%
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| Conversion premium: | 15%
|
| Conversion price: | $15.24
|
| Conversion rate: | 65.6276
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| Call options: | Non-callable until Dec. 15, 2024 and then subject to a 130% hurdle
|
| Put options: | Upon a fundamental change
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| Pricing date: | Nov. 30
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| Settlement date: | Dec. 5
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| Distribution: | Rule 144A
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| Stock symbol: | Nasdaq: AAOI
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| Stock price: | $13.25 at market close Nov. 30
|
| Market capitalization: | $481.876 million
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