By Devika Patel
Knoxville, Tenn., April 21 - Blue Coat Systems, Inc. said it has arranged an $80 million private placement of zero-coupon convertible notes with Francisco Partners II, LP and an affiliate of Elliott Associates, LP.
The notes will mature in 2013. They are convertible into common shares at an initial conversion price of $20.76, which represents a 5% conversion premium based on the closing price of Blue Coat's common stock of $19.77 per share on April 18.
Francisco also will receive warrants for 385,000 shares, exercisable at $20.76.
Proceeds will be used to partially fund the company's planned acquisition of Packeteer, Inc. The placement is conditional upon the closing of the Packeteer transaction.
Based in Sunnyvale, Calif., Blue Coat is a web communications company.
| Issuer: | Blue Coat Systems, Inc.
|
| Issue: | Convertible notes
|
| Amount: | $80 million
|
| Maturity: | 2013
|
| Coupon: | 0%
|
| Price: | Par
|
| Yield: | 0%
|
| Conversion price: | $20.76
|
| Conversion premium: | 5%
|
| Warrants: | For 385,000 shares
|
| Warrant strike price: | $20.76
|
| Investor: | Francisco Partners II, LP; affiliate of Elliott Associates, LP
|
| Pricing date: | April 21
|
| Stock symbol: | Nasdaq: BCSI
|
| Stock price: | $19.77 at close April 18
|
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