Finisar (FNSRD) Announces $90M Senior Convertible Notes Offering

October 9, 2009 8:08 AM EDT

Finisar Corporation (NASDAQ: FNSRD) today announced the pricing of its offering of 5.0% Convertible Senior Notes due 2029. Also announced was an increase in the size of the offering from $75 million to $90 million aggregate principal amount of the notes.

Finisar also granted to the initial purchaser of the notes an option to purchase up to an additional $10 million aggregate principal amount of the notes solely to cover over-allotments.

Interest will be payable semi-annually at a rate of 5.0% per annum on each April 15 and October 15, beginning April 15, 2010. Finisar intends to use the net proceeds from the offering for the repurchase and/or repayment of certain of its outstanding indebtedness, which may include all or a portion of its outstanding convertible notes and for general corporate purposes, including working capital.

The notes will be convertible into shares of Finisar's common stock at an initial conversion rate of 93.6768 shares of common stock per $1,000 principal amount of notes (which is equivalent to an initial conversion price of approximately $10.68 per share), subject to adjustment upon occurrence of certain events and unless Finisar obtains consent from a majority of holders to deliver cash or a combination of cash and shares of its common stock in satisfaction of its conversion obligation. The initial conversion price represents a conversion premium of approximately 25% relative to $8.54, which was the last reported sale price of Finisar's common stock on the Nasdaq Global Select Market on October 8, 2009.

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