Proceeds of $19.9 million for general corporate purposes
By Rebecca Melvin
New York, Oct. 6 - Mentor Graphics Corp. priced $20 million of 6.25% convertible subordinated debentures due 2026 in a private placement with a coupon of 6.25% and an initial conversion premium of 65%, according to a news release.
The debentures were issued to qualified institutional buyers under Section 4(2) of securities law.
Proceeds of $19.9 million are for general corporate purposes.
The initial conversion rate is 55.6545 shares per $1,000 of debentures for a price of $17.97 per share.
The debentures are non callable until March 6, 2011.
Holders can put the bonds in years three, six and 11 on March 1, 2013, 2016, and 2021 and in the event of a fundamental change. The debentures have net share settlement.
Wilsonville, Ore.-based Mentor Graphics provides software used in electronic design.
| Issuer: | Mentor Graphics Corp.
|
| Issue: | Convertible subordinated debentures
|
| Amount: | $20 million
|
| Maturity: | March 1, 2026
|
| Coupon: | 6.25%
|
| Price: | Par
|
| Yield: | 6.25%
|
| Conversion premium: | 65%
|
| Conversion price: | $17.97
|
| Conversion ratio: | 55.6545
|
| Hard-call protection: | For five months until March 6, 2011
|
| Puts: | Years three, six, 11 on March 1, 2013, 2016 and 2021
|
| Pricing date: | Oct. 5
|
| Distribution: | Section 4(2)
|
| Stock symbol: | Nasdaq: MENT
|
| Stock price: | $10.92 on Oct. 5
|
| Market capitalization: | $1.16 billion
|
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