Offerings completed:
biz.yahoo.com
Tuesday October 24, 9:05 am Eastern Time
ONI Systems raises $691 mln in offerings
(UPDATE: Recasts, adds details; pvs SAN JOSE)
NEW YORK, Oct 24 (Reuters) - ONI Systems Corp. (NasdaqNM:ONIS - news), a maker of optical networking gear, said on Tuesday it raised about $691 million from public offerings of 8 million common shares and convertible subordinated notes.
The San Jose, Calif.-based company said in a statement it is selling 5.65 million shares, and some stockholders are selling the rest. The offering price is $74.50 per share, with expected net proceeds to ONI of about $401.5 million. ONI has granted underwriters a 30-day overallotment option to buy an extra 1.2 million shares.
Separately, ONI said it sold $300 million of 5 percent convertible subordinated notes maturing in 2005. The offering is up from an original $250 million.
The notes, which include a $45 million overallotment option, are convertible into ONI common stock at $91.64 a share, a 23 percent premium over the stock's offering price. A 5 to 5.5 percent coupon and 21 to 25 percent conversion premium were expected.
Expected net proceeds from the bond offering will be about $290.3 million.
ONI said in filings with the Securities and Exchange Commission that it plans to use proceeds for general corporate purposes, including working capital, capital expenditures and potential acquisitions.
Credit ratings agency Standard & Poor's rated the notes ``CCC,'' a low junk grade, with a positive outlook.
Credit Suisse First Boston and Goldman Sachs & Co. were lead managers for both offerings, which are expected to close on Oct. 27. Chase H&Q and Robertson Stephens helped arrange the offerings, and Banc of America Securities LLC helped arrange the stock offering.
A convertible bond is a hybrid security that usually offers current income, and can be converted into company stock. Its fortune is closely tied to the underlying stock price.
ONI stock closed Monday on Nasdaq at $75-9/16. It began trading on June 1, and closed as high as $136-3/4 on June 22. |
