Nasdaq OMX tenders for any and all $428 million 2.5% convertibles

By Jennifer Chiou

New York, Sept. 20 - Nasdaq OMX Group, Inc. announced the start of a cash tender offer for any and all of its $428 million of 2.5% convertible senior notes due 2013.

The company is offering $1,025 for each $1,000 principal amount of notes plus accrued interest.

The offer will end at midnight ET on Oct. 18, and any acquired notes will be canceled.

The company stated that the settlement structure of the convertible notes permits settlement in cash upon conversion, requiring a separate accounting for the liability and equity components of the debt. As a result, the effective annual interest rate associated with the securities for the most recent quarterly results was 6.53%.

The company added that it will use cash from operations and proceeds from its new $1.2 billion senior unsecured five-year credit facility to fund the offer.

"We are very pleased in this environment to be able to pursue these transactions which reduce our overall borrowing costs, extend the maturity profile of our debt obligations, increase our revolver borrowing capacity and generate positive earnings per share returns," chief financial officer Lee Shavel said in a news release.

Bank of America Merrill Lynch (980 683-3215 or call collect 888 292-0070) and UBS Investment Bank (203 719-4210 or call collect 888 719-4210) are the dealer managers.

D. F. King & Co., Inc. is the information agent and depositary (212 269-5550 or 800 628-8536).

The exchange technology company is based in New York City.

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