Sierra to tender for Wavecom's Oceane convertibles

By Susanna Moon

Chicago, Dec. 2 - Sierra Wireless, Inc. said it will offer €31.93 per Wavecom SA's Oceane convertible bond under its proposed acquisition of the company.

The board of directors has decided to adjourn Wavecom's meeting of shareholders, which was to be held on Dec. 8.

The price represents a 2% premium to the Oceane redemption value.

Sierra also will pay accrued interest.

Funding will come from balance sheet cash and available credit facilities.

Sierra Wireless has drawn a letter of credit in the amount of €218 million secured by cash and an €80.5 million secured term facility underwritten by CIBC World Markets Inc. and TD Securities Inc. The facility will facilitate the purchase of the Oceanes until Wavecom redeems them from its existing cash balance upon completion of the deal.

Wavecom is an Issy-Les-Moulineaux, France-based wireless communications provider. Sierra is a modem and software company based in Vancouver, B.C.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.