Mentor Graphics $150 million convertible talked at 6.875-7.375% yield, up 40-45%

By Ronda Fears

Nashville, Tenn., May 28 - Mentor Graphics Inc. launched $150 million of five-year convertible subordinated notes talked to yield 6.875% to 7.375% with a 40% to 45% % initial conversion premium. Banc of America Securities is lead manager of the Rule 144A deal, which is set to price after the close Wednesday.

The convert will be non-callable for three years.

There is a $22.5 million greenshoe available.

Wilsonville, Ore.-based Mentor Graphics, plans to use proceeds to fund its pending acquisition of Innoveda Inc.

Mentor Graphics conducts electronic design automation, providing software and hardware design tools. Innoveda provides electronic design automation software and services.

Mentor Graphics shares closed off 64c to $17.20.

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