10 December 2013

Finisar proposes $200m offering of convertible senior notes

Fiber-optic communications component and subsystem maker Finisar Corp of Sunnyvale, CA, USA has announced its intention to offer (subject to market conditions and other factors) $200m aggregate principal amount of convertible senior notes (due in 2033) in a private placement to qualified institutional buyers. Finisar also expects to grant the initial purchaser of the notes a 30-day option to purchase up to an additional $30m of the notes solely to cover over-allotments.

The notes will be unsecured, senior obligations of Finisar, and interest will be payable semi-annually.
The terms of the notes will require Finisar to redeem them at the option of the holders for cash on dates to be determined, in each case at a purchase price equal to the principal amount plus accrued and unpaid interest up to, but excluding, the redemption date. In addition, the terms will permit holders to require Finisar to redeem their notes upon a change of control or a termination of trading.

The terms will permit Finisar to redeem all or a part of the notes on and after dates to be determined, in each case at a redemption price equal to the principal amount plus accrued and unpaid interest to, but excluding, the redemption date.

Prior to 15 June 2033, the notes will be convertible at the option of the holders only upon the occurrence of specified events, and thereafter until the close of business on the second scheduled trading day immediately preceding the maturity date, the notes will be convertible at any time. Upon conversion, the notes will be settled in cash, shares of Finisar’s common stock, or any combination the two, at Finisar’s option. Final terms of the notes (including the interest rate, initial conversion rate and other terms) will be determined by negotiations between Finisar and the initial purchaser.

Finisar expects to use the net proceeds from the offering for general corporate purposes (including working capital) and may also use a portion of the proceeds to acquire complementary businesses, products or technologies (although Finisar has no present commitments with respect to any such acquisitions).

See related items:

Finisar reports fifth quarter of revenue growth to record $290.7m

Tags: Finisar

Visit: www.finisar.com