24 May 2013

Infinera announces proposed $100m offering of notes

Infinera Corp of Sunnyvale, CA, USA, a vertically integrated manufacturer of digital optical network systems incorporating its own indium phosphide-based photonic integrated circuits (PICs), has announced its intention to offer (subject to market conditions and other factors) $100m aggregate principal amount of convertible senior notes due 2018 in a private placement to qualified institutional buyers (pursuant to Rule 144A under the Securities Act of 1933, as amended). Infinera also expects to grant the initial purchasers of the notes a 30-day option to purchase up to an additional $15m aggregate principal amount of the notes to cover overallotments.

The notes will be unsecured, unsubordinated obligations of Infinera, and interest will be payable semi-annually. Prior to 1 December 2017, the notes will be convertible at the option of the noteholders only upon the occurrence of specified events; thereafter until maturity the notes will be convertible at the option of the noteholders at any time.

Upon conversion, the notes will be settled in cash, shares of Infinera’s common stock or any combination thereof at Infinera’s option. Final terms of the notes, including the interest rate, initial conversion rate and other terms, will be determined by negotiations between Infinera and the initial purchasers of the notes.

Infinera expects to use the net proceeds of the offering for general corporate purposes, including working capital and potential strategic projects.

Neither the notes nor the shares of Infinera’s common stock issuable upon conversion of the notes have been registered under the Securities Act or the securities laws of any other jurisdiction and may not be offered or sold in the USA absent registration or an applicable exemption from such registration requirements.

Tags: Infinera

Visit: www.infinera.com