By Rebecca Melvin
New York, July 9 - Verigy Ltd. priced an upsized $120 million of five-year convertibles after the market close Thursday at par to yield 5.25% with an initial conversion premium of 25%, according to a syndicate source.
Initially the deal size was $110 million of notes.
The Rule 144A offering priced beyond the tight end of the talked range on the coupon, which was 5.5% to 6%, and at the tight end of the talk for the premium, which was 20% to 25%.
There is a greenshoe of 15%, or $18 million of notes.
Morgan Stanley and JPMorgan were joint bookrunners of the notes, which are non-callable until July 20, 2012 and then are provisionally callable thereafter at a price hurdle of 130%.
Proceeds will be used for general corporate purposes, which may include financing potential acquisitions and strategic transactions, and working capital.
Based in Singapore, Verigy is a semiconductor test company with operations in California.
| Issuer: | Verigy Ltd.
|
| Issue: | Convertible senior notes
|
| Amount: | $120 million, upsized from $110 million
|
| Greenshoe: | $18 million, upsized from $16.5 million
|
| Maturity: | July 15, 2014
|
| Bookrunners: | Morgan Stanley and JPMorgan
|
| Coupon: | 5.25%
|
| Price: | Par
|
| Yield: | 5.25%
|
| Conversion premium: | 25%
|
| Conversion price: | $13.11
|
| Conversion ratio: | 76.2631
|
| Price talk: | 5.5%-6%, up 20%-25%
|
| Calls: | Non-callable until July 20, 2012, then provisionally callable thereafter at a 130% price hurdle
|
| Puts: | No puts
|
| Pricing date: | July 9, after the close
|
| Settlement date: | July 15
|
| Distribution: | Rule 144A
|
| Stock symbol: | Nasdaq: VRGY
|
| Stock reference: | $10.49
|
| Market capitalization: | $600 million
|
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