Wind River $125 million convertibles talked at 3.75-4.25% yield, 30-33% premium

By Ronda Fears

Nashville, Tenn., Dec. 4 - Wind River Systems Inc. launched $125 million of five-year convertible notes with price talk of a 3.75% to 4.25% yield and a 30% to 33% initial conversion premium.

The Rule 144A issue is set to price after the close Tuesday, via book-running lead manager Credit Suisse First Boston.

The five-year issue will have three years of provisional call protection with a 150% trigger and a make-whole feature for coupon payments in the event the issue is called early. There is a $25 million greenshoe.

Alameda, Calif.-based Wind River, a provider of software and services for connected smart devices, said it intends to use proceeds for general corporate purposes, including working capital, payment of existing indebtedness and potential acquisitions.

Wind River shares closed Tuesday up $1.72 to $18.57. The Wind River 5% convertible notes (B-) due August 2002, a $140 million issue that sold at par in July 1997, were quoted flat at 95 bid, 97 offered.

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