By Kenneth Lim
Boston, Nov. 7 - Arris Group Inc. on Monday priced an upsized $240 million of 20-year convertible senior notes at the rich end of talk, at a coupon of 2% and an initial conversion premium of 40%.
The notes, which priced after the market closed, were offered at par. They were talked at a coupon of 2% to 2.5% and an initial conversion premium of 35% to 40%.
There is an over-allotment option for a further $36 million.
The size of the deal was originally $225 million, with a greenshoe of a further $33.75 million.
UBS Investment Bank and Deutsche Bank Securities were the bookrunners of the registered off-the-shelf offering.
The notes are non-callable for the first seven years, with puts in years seven, 10 and 15.
There is a contingent conversion hurdle at 120% of the conversion price.
There is dividend and takeover protection.
Arris, a Suwanee, Ga.-based maker of broadband communications equipment, said the proceeds of the deal will be used for general purposes, which includes future acquisitions.
| Issuer: | Arris Group Inc.
|
| Issue: | Convertible senior notes
|
| Bookrunners: | UBS Investment Bank and Deutsche Bank
|
| Amount: | $240 million
|
| Greenshoe: | $36 million
|
| Maturity: | Nov. 15, 2026
|
| Coupon: | 2%
|
| Price: | Par
|
| Yield: | 2%
|
| Conversion premium: | 40%
|
| Conversion price: | $16.09
|
| Conversion ratio: | 62.1504
|
| Contingent conversion: | 120%
|
| Dividend protection: | Yes
|
| Takeover protection: | Yes
|
| Call protection: | Non-callable before Nov. 15, 2013
|
| Puts: | Nov. 15, 2013; Nov. 15, 2016; Nov. 15, 2021
|
| Price talk: | 2%-2.5%, up 35%-40%
|
| Pricing date: | Nov. 6, after the close
|
| Settlement date: | Nov. 13
|
| Distribution: | Registered
|
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