New Issue: Extreme Networks $175 million convertibles at 3.5% yield, up 27%

By Ronda Fears

Nashville, Tenn., Nov. 30 - Extreme Networks Inc. sold $175 million of five-year convertible senior subordinated notes at par to yield 3.5% with a 27% initial conversion premium.

Goldman Sachs & Co. was lead manager of the Rule 144A deal, which sold more aggressive than price talk that put the yield between 3.75% and 4.25%, and at the aggressive end of guidance for a 23% to 27% initial conversion premium.

Santa Clara, Calif.-based Extreme Networks, a provider of switching solutions to the local area network industry, said it would use proceeds for working capital and general corporate purposes.

Terms of the new deal are:

Issuer: Extreme Networks Inc.

Amount: $175 million

Greenshoe: $25 million

Lead Manager: Goldman Sachs

Maturity Date: Dec. 1, 2006

Coupon: 3.5%

Issue Price: par

Yield: 3.5%

Conversion Premium: 27%

Conversion Price: $20.955

Conversion Ratio: 47.7213

Call: non-callable for three years

Settlement Date: Dec. 5

End

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