Finisar plans to sell $75 million in new debt

Finisar plans to sell $75 million in convertible senior notes to repay older debt

• On 5:18 pm EDT, Wednesday October 7, 2009

SUNNYVALE, Calif. (AP) -- Networking components maker Finisar Corp. on Wednesday said it plans to sell $75 million in new bonds and use the money to pay off older debt.

The company said it will sell $75 million of convertible senior notes due 2029 to qualified institutional buyers. It also expects to grant the initial purchaser of the notes an option to buy up to $11.25 million more if demand exceeds initial supply.

The proceeds will be used for the repurchase and/or repayment of certain outstanding debt, which may include all or a portion of its outstanding convertible notes, Finisar said. It may also use some of the proceeds for general corporate purposes, or for an acquisition or investment in another business. Finisar said it does not have deals on the table at the time.

Finisar shares closed regular trading at $9.52, down 15 cents on the session. In aftermarket electronic trading, shares dropped 82 cents, or 8.6 percent, to $8.70.