Mentor Graphics $100 million convertible floater talked at 3-mo Libor plus 140-190 bps, up 37.5-42.5%

By Ronda Fears

Nashville, July 31 - Mentor Graphics Corp. plans to sell $100 million of 20-year convertible floating rate notes talked to yield three-month Libor plus 140 to 190 basis points with a 37.5% to 42.5% initial conversion premium.

Pricing is scheduled for after the close Thursday.

Joint bookrunners of the Rule 144A deal are Merrill Lynch & CO. and Banc of America Securities. Co-managers are FleetBoston, Key Corp, Needham, Adam Harkness, Wells Fargo and D.A. Davidson.

The subordinated debentures will be non-callable for four years, with puts in years seven, 10 and 15. There also is a 120% contingent conversion trigger.

For the first two years, holders will have full dividend protection by way of a conversion ratio adjustment.

There is a $10 million greenshoe available.

Mentor Graphics said it may use a portion of proceeds to repurchase stock from convertuble buyers and the remainder for general corporate purposes, which may include acquisitions.

© 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.