22 August 2013

JDSU’s private offering raises $636m

Optoelectronic chip and module maker JDSU of Milpitas, CA, USA has completed the sale of $650m aggregate principal amount of 0.625% senior convertible debentures due 2033, including $75m aggregate principal amount of notes related to the initial purchasers’ over-allotment option (exercised in full). Net proceeds totaled about $636m after deducting the initial purchasers’ discounts and estimated offering expenses.

“Completion of this senior convertible offering further strengthens JDSU’s balance sheet, with cash and short-term investments now in excess of $1bn,” says executive VP & chief financial officer Rex Jackson. “The opportunity to raise additional funds with favorable terms provides JDSU with increased financial flexibility as we execute our growth strategy.”

JDSU has the right to redeem the notes beginning 20 August 2018. Holders of the notes may require JDSU to repurchase the notes on 15 August 2018, 15 August 2023, and 15 August 2028.

JDSU used $100m of the net proceeds to repurchase shares of its outstanding common stock in privately negotiated transactions. The remaining net proceeds will be used for general corporate purposes, including potential strategic transactions.

JDSU has also terminated its $250m revolving credit facility.

Tags: JDSU

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