Infinera talks $275 million six-year convertible notes to yield 3.25%-3.75%, up 27.5%-32.5%

By Abigail W. Adams

Portland, Me., Aug. 2 – Infinera Corp. plans to price $275 million of six-year convertible notes after the market close on Wednesday with price talk for a coupon of 3.25% to 3.75% and an initial conversion premium of 27.5% to 32.5%, according to a market source.

Jefferies LLC is bookrunner for the Rule 144A offering, which carries a greenshoe of $41.25 million.

The notes are non-callable until Aug. 5, 2025 and then subject to a 130% hurdle.

They are putable upon a fundamental change.

They will be settled in cash up to their principal amount with remaining amounts to be settled in cash, shares or a combination of both at the company’s option.

Proceeds will be used to repurchase the company’s 2.125% convertible notes due 2024 in privately negotiated transactions.

Infinera is a San Jose, Calif.-based global supplier of optical networking equipment.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.