Lucent repurchases further $280 million convertible preferreds for stock

New York, Dec. 12 - Lucent Technologies, Inc. said it bought back a further $280 million of its 8% redeemable convertible preferred stock since its last report.

Lucent previously reported on Oct. 23 that it bought back $175 million of the convertible preferreds in the fiscal fourth quarter and a further $100 million since Sept. 30.

In a report to the Securities and Exchange Commission Thursday, Lucent said repurchases since Sept. 30 now total $380 million.

In all cases the Murray Hill, N.J. network equipment company bought back the convertibles with stock.

For the repurchases since Sept. 30, Lucent paid 143 million shares of common stock.

In total, Lucent has now bought back $555 million of the preferreds and issued stock worth $125 million more than the fair value had the preferreds been converted under their original terms.

Lucent said it may carry out similar transactions in the future.

Lucent originally issued $1.885 billion of the convertible preferreds in August 2001.

Tech Data redeems 5% convertibles

New York, Dec. 12 - Tech Data Corp. said it has redeemed all $300 million of its 5% convertible subordinated debentures due July 1, 2003.

The Clearwater, Fla. provider of IT products and logistic management services said it paid 101 to holders.

Tech Data said it called the securities because of the company's strong cash position and the current low interest rate environment. Including the $3 million call premium, the redemption will result in interest savings of $2.8 million through the original maturity date or 6 cents per share from Dec. 12, 2002 through the maturity of July 1, 2003.

Tech Data added that is has more than $200 million of cash on hand and unused credit facility of approximately $1.3 billion.

Ciena starts tender for ONI 5% convertibles

New York, Dec. 12 - Ciena Corp. said it is tendering for the remaining 5% convertible subordinated notes due 2005 issued by ONI Systems Corp.

The Linthicum, Md. company is offering $860 in cash per $1,000 principal amount of the convertibles plus accrued interest up to but not including the date of payment.

Expiry for the tender is 5.00 p.m. ET on Jan. 13.

Ciena said it is carrying out the tender to reduce interest expense and eliminate the need to repay or refinance the convertibles at maturity in 2005.

The company noted it bought back $97.1 million of the $300 million of ONI convertibles during the third quarter in the open market at a cost of $75.2 million. The securities had an accreted book value of $72.5 million at the time of purchase. As a result there is now $202.9 million principal amount of the notes outstanding.

The tender offer is not dependent on financing. Ciena said it will use cash, cash equivalents and short-term investments to fund purchases.

Investors can convert the notes at the rate of 7.7525 shares per $1,000 principal amount. Ciena stock closed at $5.18 Wednesday.

Dealer manager for the tender offer is Goldman, Sachs & Co. (212 902-1000), the depositary is State Street Bank and Trust Co. of California, NA and the information agent is Georgeson Shareholder Communications (866 295-4322).

Ciena said if it purchases all the outstanding ONI convertibles it will record a book loss of $18.7 million on the early extinguishment of debt.

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