By Sara Rosenberg
New York, May 1 - Comverse Technology Inc.'s $350 million zero-coupon convertible notes due 2023, which came after the close Thursday as an overnight deal, priced to yield 0% with an initial conversion premium of 37%.
The offering was talked at 0% yield, with an initial conversion premium of 36% to 40%.
Based on talk, the deal was valued 1.84% cheap to theoretical value, using a $13.04 stock price, a volatility assumption of 40% and a credit spread assumption of 315 basis points, according to Kimberlee Brody, a Wachovia Securities, Inc. analyst.
Lehman is the lead manager on the Rule 144A deal.
There is a $70 million greenshoe.
The convertibles are non-callable for five years and callable at par thereafter. There are puts at years five, 10 and 15.
The Woodbury, N.Y. provider of computer and telecommunications systems and software plans to use proceeds for working capital and other general corporate purposes
Terms of the new deal are:
| Issuer: | Comverse Technology Inc.
|
| Issue: | Zero yield convertible putable securities
|
| Amount: | $350 million
|
| Greenshoe: | $70 million
|
| Lead manager: | Lehman
|
| Maturity date: | May 12, 2023
|
| Coupon: | 0%
|
| Issue price: | Par
|
| Yield to maturity: | 0%
|
| Conversion premium: | 37%
|
| Conversion price: | $17.974
|
| Conversion ratio: | 55.635
|
| Call: | Non-callable for five years, then at par
|
| Put: | In years five, 10 and 15
|
| Contingent conversion: | 120%
|
| Rating: | S&P: BB- (expected)
|
| Settlement date: | May 7, 2003
|
|
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
