20 December 2010

Finisar announces public offering of 3.6 million shares

Fiber-optic communications component and subsystem maker Finisar Corp of Sunnyvale, CA, USA has agreed to sell 3,600,000 shares of its common stock in an underwritten public offering. Sole underwriter Credit Suisse Securities (USA) LLC will have an option to purchase up to an additional 540,000 shares solely to cover over-allotments, if any.

Finisar’s last public offering, of 7,200,000 shares initially, closed on 22 March (after being raised to 8,640,000 shares, plus 1,296,000 shares in over-allotments). At $14 per share, that raised proceeds of $139.1m gross ($131.2m net). Subsequently, in September, the firm acquired transceiver maker Broadway Networks Ltd. So far in December, Finisar’s share price has risen steadily from under $20 to almost $30 (more than double the price of the last offering).

The firm intends to use net proceeds of the new offering for general corporate purposes, including working capital. Part of the net proceeds may be used for the repurchase and/or repayment of outstanding indebtedness, which may include a portion of its outstanding convertible notes.

The firm may also use part of the proceeds to acquire or invest in complementary businesses, products or technologies (although it has no present agreements or commitments with respect to any such acquisitions or investments).

The offering will be made pursuant to an effective automatic shelf registration statement. A prospectus supplement relating to the offering will be filed with the US Securities and Exchange Commission (SEC) and, once filed, the prospectus supplement and accompanying base prospectus will be available on the SEC's website.

See related items:

Finisar’s quarterly revenue up 16% to record $240.9m

Finisar’s fifth quarter of double-digit growth yields record revenue of $207.9m

Finisar’s quarterly revenue rises 12.9% to record $188.5m

Finisar grows 32.4% year-on-year

Tags: Finisar

Visit: www.sec.gov

Visit: www.finisar.com

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