11 December 2012

Oclaro prices $25m offering at $1.846 per share

Optical component, module and subsystem maker Oclaro of San Jose, CA, USA says that its subsidiary Oclaro Luxembourg S.A. has priced its offering of $25m of Exchangeable Senior Secured Second Lien Notes (due 2018), which are to be sold to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933 (as amended). Announced on 10 December, the offering is expected to close on 14 December (subject to customary closing conditions).

The notes will bear interest at a rate of 7.5% per year (payable semi-annually in arrears on 15 June and 15 December of each year, beginning on 15 June 2013) and will mature on 15 June 2018.

The notes can be exchanged prior to maturity (unless earlier redeemed or repurchased) at the option of the holder for shares of Oclaro’s common stock at the initial exchange rate of 541.7118 shares of common stock per $1000 in principal amount of motes. This is equivalent to an initial exchange price of about $1.846 per share (a premium of about 30% over the $1.42 tarding price on The NASDAQ Global Select Market on 10 December).

Oclaro intends to use the net proceeds of about $23.2m for general corporate purposes, including working capital. In addition, it may use part of the net proceeds to acquire or invest in complementary businesses, products or technologies. The firm adds that its management will have significant discretion in applying the net proceeds.

See related items:

Oclaro to offer $25m of Exchangeable Senior Secured Second Lien Notes due 2018

Oclaro’s quarterly earnings slip further into red

Tags: Oclaro

Visit: www.oclaro.com