New Issue: Emulex $300 million convertibles at 1.75% yield, up 22%

By Ronda Fears

Nashville, Tenn., Jan. 24 - Emulex Corp. sold $300 million of five-year convertible notes at par to yield 1.75% with a 22% initial conversion premium. Lead manager of the overnight Rule 144A deal was Credit Suisse First Boston.

The issue sold at the rich end of pricing guidance that put the yield at 1.75% to 2.25% and the premium between 18% and 22%.

The Costa Mesa, Calif.-based computer data storage equipment maker said proceeds would be used for general corporate purposes, including working capital and potential acquisitions.

Terms of the new deal are:

Issuer: Emulex Corp.

Amount: $300 million

Greenshoe: $45 million

Lead Manager: Credit Suisse First Boston

Maturity Date: Feb. 1, 2007

Dividend: 1.75%

Issue Price: par

Yield: 1.75%

Conversion Premium: 22%

Conversion Price: $53.84

Conversion Ratio: 18.5736

Call: non-callable for three years

Settlement Date: Jan. 29

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