Cray $60 million convertible talked at 3.0%-3.5% yield, up 32.5%-37.5%

Nashville, Nov. 30 - Cray Inc. launched $60 million of 20-year convertible notes on Tuesday talked to yield 3.0% to 3.5% with a 32.5% to 37.5% initial conversion premium.

Bear Stearns & Co. Inc. is sole bookrunner of the Rule 144A deal, which was slated to price after the market close Wednesday.

The senior subordinated notes will be non-callable for three years and then with a 150% hurdle and coupon make-whole provision in years four and five. There are puts in years seven, 10 and 15.

There is a 120% contingent conversion trigger, along with a provision for settlement in cash and/or stock

There is full dividend and takeover protection for holders.

A $15 million greenshoe is available.

The Seattle-based computer maker said it would use proceeds to support operations and growth and other general corporate purposes.

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