Bringing you live news and features since 2013
Bringing you news, views and analysis since 2013
Money and calculator

13239

JDSU prices USD575m of senior convertible notes

RELATED TOPICS​

JDSU has priced USD575m aggregate principal amount of its 0.625 per cent senior convertible debentures due 2033 in a private offering to qualified institutional buyers.

 
JDSU has granted the initial purchasers a 30-day option to purchase up to an additional USD75m aggregate principal amount of the notes. The sale of the notes is expected to close on 21 August 2013, subject to customary closing conditions.
 
When issued, the notes will represent senior unsecured obligations of JDSU and pay interest semi-annually in arrears on February 15 and August 15 of each year at a rate of 0.625 per cent per annum. They will mature on 15 August 2033 unless earlier converted, redeemed or repurchased.
 
The notes will be convertible at the option of holders in certain circumstances and during certain periods into cash up to their principal amount, and into cash, shares of JDSU common stock or a combination of cash and JDSU common stock at JDSU’s election for the conversion value above the principal amount. The initial conversion rate is 53.1067 shares of JDSU common stock per USD1,000 principal amount of the notes, which is equivalent to an initial conversion price of approximately USD18.83 per share and will be subject to customary anti-dilution adjustments. This represents an approximately 40 per cent conversion premium over the closing price of USD13.45 of JDSU’s common stock on 15 August 2013.
 
JDSU has the right to redeem the notes beginning 20 August 2018. Holders of the notes may require JDSU to repurchase the notes on 15 August 2018, 15 August 2023 and 15 August 2028.
JDSU estimates that net proceeds from this offering will be approximately USD563m, or approximately USD636m if the initial purchasers exercise their option to purchase additional notes in full, after deducting the initial purchasers’ discounts and estimated offering expenses. JDSU is using USD100m of the net proceeds from the offering to repurchase shares of its outstanding common stock in privately negotiated transactions, which may be effected through one or more of the initial purchasers of the notes or their respective affiliates, concurrently with the offering. The remaining net proceeds will be used for general corporate purposes, including potential strategic transactions.

Latest News

The trading and investment platform eToro has extended its proxy voting feature to all stocks..
C8 Technologies, the London-based fintech founded by former BlueCrest Capital Management partners Mattias Eriksson and..
DWS has announced the latest development in its strategic growth push in Alternative Credit with..

Related Articles

Pension funds
UK defined benefit (DB) pension plan sponsors could have access to GBP 1.2 trillion in surplus assets over the next decade, industry research reveals...
UK defined benefit (DB) pension plan sponsors could have access to GBP 1.2 trillion in surplus assets over the next..
Tim Crawmer, Payden & Rygel
Tim Crawmer and Frasat Shah of Payden & Rygel write that higher yields are attracting more demand from investors. Also, given that equities had a strong year last year, big funds have taken some chips off the table in equities and put them into fixed income...
Tim Crawmer and Frasat Shah of Payden & Rygel write that higher yields are attracting more demand from investors. Also,..
Lady justice
Top marks for the Pensions Regulator (TPR) whose efforts to improve resilience in the UK pension funds’ liability-driven investment (LDI) strategies received glowing commendations from the Bank of England in its March report...
Top marks for the Pensions Regulator (TPR) whose efforts to improve resilience in the UK pension funds’ liability-driven investment (LDI)..
Pension funds
Four potential operators of pensions dashboards (Just Group, Legal & General, Moneyhub and Standard Life, part of Phoenix Group) are coming together to instigate a new industry coalition...
Four potential operators of pensions dashboards (Just Group, Legal & General, Moneyhub and Standard Life, part of Phoenix Group) are..
Subscribe to the Institutional Asset Manager newsletter

Subscribe for access to our weekly newsletter, newsletter archive, updates on the site and exclusive email content.

Marketing by