Finisar prices offering of senior notes

Finisar prices private offering, boosts it to $90 million in senior notes

• On 8:22 am EDT, Friday October 9, 2009

SUNNYVALE, Calif. (AP) -- Networking-components maker Finisar Corp. on Friday said it priced its private offering of 5 percent convertible senior notes due 2029 and boosted the size of the offering to $90 million from $75 million of the notes.

The offering is expected to close on Oct. 14. Finisar also granted to the initial buyer of the notes an option to buy up to an additional $10 million of notes to cover over allotments.

The notes will mature on Oct. 15, 2029. Interest will be payable semiannually at a rate of 5 percent on each April 15 and Oct. 15, beginning April 15, 2010.

The notes will be convertible into Finisar common shares at an initial rate of 93.6768 shares per $1,000 of notes. The rate is equivalent to an initial conversion price of about $10.68 per share.

The initial conversion price represents a premium of about 25 percent over the company's Thursday closing price of $8.54.

Finisar plans to use the net proceeds from the offering for the repurchase or repayment of debt and for general corporate purposes.