By Rebecca Melvin
New York, Sept. 11 – Harmonic Inc. priced $105 million of 2% five-year convertible senior notes with an initial conversion premium of 30%, according to news release on Wednesday.
The Rule 144A deal has a $10.5 million greenshoe.
The notes are non-callable until Sept. 6, 2022 and redeemable thereafter if shares are at least 130% of the conversion price for 20 out of 30 trading days. The notes will be settled in cash, shares or a combination of shares and cash at Harmonic’s election.
About $82.5 million of proceeds are being used to repurchase a portion of the company’s outstanding 4% convertible notes due 2020. Remaining proceeds are for general corporate purposes.
Harmonic expects that holders of the 2020 notes who sell their notes may enter into or unwind various derivatives with respect to Harmonic's common stock and/or purchase or sell shares in the market to hedge their exposure in connection with these transactions.
Barclays was the bookrunner for the transaction, according to a market source.
Harmonic is a San Jose, Calif.-based video infrastructure products maker.
| Issuer: | Harmonic Inc.
|
| Issue: | Convertible senior notes
|
| Amount: | $105 million
|
| Greenshoe: | $10.5 million
|
| Maturity: | Sept. 1, 2024
|
| Bookrunner: | Barclays
|
| Coupon: | 2%
|
| Conversion premium: | 30%
|
| Conversion price: | $8.66
|
| Conversion ratio: | 115.5001 shares
|
| Calls: | Non-callable until Sept. 6, 2022, then callable at 130% price hurdle
|
| Net share settlement: | Yes
|
| Pricing date: | Sept. 10
|
| Settlement date: | Sept. 13
|
| Stock symbol: | Nasdaq: HLIT
|
| Stock reference price: | $6.66, as of close Sept. 10
|
| Market capitalization: | $636.96 million
|
| Distribution: | Rule 144A
|
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