Key Developments For Finisar Corporation
Finisar Corporation (FNSR.O) (Nasdaq)
Finisar Corporation Announces Pricing And An Increase In Size Of Its $90 Million Convertible Senior Notes Offering
Finisar Corporation announced the pricing of its offering of 5.0% Convertible Senior Notes due 2029 ,and an increase in the size of the offering from $75 million to $90 million aggregate principal amount of the notes. The offering is expected to close on October 14, 2009. 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. The notes will be unsecured and unsubordinated obligations of Finisar, and will rank equally in right of payment with Finisar's other unsecured and unsubordinated indebtedness, but will be effectively subordinated to any secured indebtedness and liabilities to the extent of the value of the collateral securing those obligations, and structurally subordinated to the indebtedness and other liabilities of Finisar's subsidiaries. The notes will mature on October 15, 2029, unless earlier repurchased, redeemed or converted. 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.
Finisar Corporation Announces Proposed $75 Million Convertible Senior Notes Offering
Finisar Corporation announced its intention to offer $75 million aggregate principal amount of convertible senior notes due 2029, subject to market conditions and other factors. The Company also expects to grant the initial purchaser of the notes an option to purchase up to an additional $11.25 million aggregate principal amount of the notes solely to cover over-allotments. The notes will be unsecured and unsubordinated obligations of the Company and will rank equally in right of payment with Finisar's other unsecured and unsubordinated indebtedness, but will be effectively subordinated to any secured indebtedness and liabilities to the extent of the value of the collateral securing those obligations, and structurally subordinated to the indebtedness and other liabilities of the Company's subsidiaries. Interest will be payable semi-annually in arrears, and the notes will be convertible into shares of the Company's common stock, unless the Company 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. Final terms of the notes, including the interest rate, conversion rate, offering price and other terms, will be determined at the time of pricing the offering based on negotiations with the initial purchaser of the notes.
Finisar Corporation Announces New Credit Facility With Wells Fargo Foothill
Finisar Corporation announced that it had entered into an agreement with Wells Fargo Foothill, a provider of senior secured financing and part of Wells Fargo & Company, to establish a new senior secured revolving credit facility to finance working capital and to refinance existing indebtedness, including the repurchase of a portion of the Company's outstanding convertible notes due October 2010. The new credit facility provides for a $70 million revolving line of credit and includes a $10 million letter of credit sub-facility. Borrowings under the credit facility will bear interest at rates based on the prime rate and LIBOR plus variable margins, under which applicable interest rates currently range from 5.75% to 6.25% per annum. Borrowings will be guaranteed by Finisar's U.S. subsidiaries and secured by substantially all of the assets of Finisar and its U.S. subsidiaries. The credit facility matures four years following the closing date, subject to certain conditions.
Finisar Corporation Introduces Wavelength Selective Switch
Finisar Corporation announced that it has introduced new Edge Wavelength Processor (EWP) 1x2 Wavelength Selective Switch (WSS).
Finisar Corporation Issues Q2 2010 Revenue Outlook Above Analysts' Estimates-Conference Call
Finisar Corporation announced that for the second quarter of 2010, it expects revenues to be in a range of $132 to $142 million. According to Reuters Estimates, analysts on an average were expecting the Company to report revenue of $130 million for the same period.
