Sybase $400 convertibles yield 1.75%, up 35%

New York, Feb. 15 - Sybase, Inc. priced $400 million of convertible subordinated notes due 2025 to yield 1.75% with a 35% initial conversion premium after the close Tuesday.

The deal priced at the middle of guidance for a 1.5% to 2.0% coupon and 32.5% to 37.5% initial conversion premium.

The conversion ratio for the notes is 39.6511 and the conversion price $25.22. There is a 130% contingent conversion trigger.

The securities are callable from March 1, 2010 onwards at par and have puts on Feb. 22, 2010, Feb. 22, 2015 and Feb. 22, 2020.

There is a $60 million greenshoe.

Lehman Brothers Inc. and Merrill Lynch & Co. are joint bookrunners of the Rule 144A deal.

Dublin, Calif.-based Sybase, a wireless software company for mobile and wi-fi technologies, said it would use $125 million of the proceeds to buy back stock concurrent with the notes offering.

Remaining proceeds, the company said, would be used for working capital and general corporate purposes, which may include the acquisitions, strategic investments or additional purchases of common stock.

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