VRSN » Topics » CONVERTIBLE DEBENTURES

This excerpt taken from the VRSN 8-K filed Aug 15, 2007.

CONVERTIBLE DEBENTURES

MOUNTAIN VIEW, CA – August 14, 2007 – VeriSign, Inc. (Nasdaq: VRSN), today announced that it has priced $1.1 billion of 3.25% junior subordinated convertible debentures due in 2037. The debentures will be sold to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended. The sale is expected to close August 20, 2007.

The debentures will be initially convertible, subject to certain conditions, into shares of VeriSign’s common stock at a conversion rate of 29.0968 shares of common stock per $1,000 principal amount of debentures. This represents an initial effective conversion price of approximately $34.3680 per share. This initial conversion price represents a premium of 20% to the closing price of VeriSign’s common stock on August 14th, which was $28.64 per share.

VeriSign intends to use the net proceeds of the offering of the debentures to repurchase shares of its common stock through an accelerated share repurchase program, from institutional investors in negotiated transactions and in open market transactions. In connection with hedging its position with respect to the accelerated share repurchase program, the counterparty to such transaction or its affiliate expects to purchase shares of VeriSign common stock concurrently with, or shortly after the offering of the debentures and expects to purchase or sell shares of VeriSign common stock in secondary market transactions during the term of the accelerated share repurchase program. VeriSign intends to use any remaining net proceeds for general corporate purposes.

If the initial purchaser exercises its overallotment option, VeriSign may use the additional net proceeds to repurchase additional shares of its common stock.

This announcement is neither an offer to sell nor a solicitation of an offer to buy any of these securities and shall not constitute an offer, solicitation or sale in any jurisdiction in which such offer, solicitation or sale is unlawful.

The debentures have not been registered under the Securities Act of 1933, as amended, or any state securities laws and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements.

This excerpt taken from the VRSN 8-K filed Aug 13, 2007.

CONVERTIBLE DEBENTURES

MOUNTAIN VIEW, CA – August 13, 2007 – VeriSign, Inc. (Nasdaq: VRSN) today announced that it proposes to offer $1.1 billion principal amount of junior subordinated convertible debentures, subject to market conditions and other factors. The debentures would be due in 2037 and are to be offered and sold to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended. The conversion rate and other terms will be determined by negotiations between the Company and the initial purchaser of the debentures. VeriSign also intends to grant to the initial purchaser of the debentures the right to purchase up to an additional $200 million principal amount of debentures solely to cover overallotments.

VeriSign intends to use the net proceeds of the offering of the debentures to repurchase shares of its common stock through an accelerated share repurchase program and/or from institutional investors in negotiated transactions. In connection with hedging its position with respect to the accelerated share repurchase program, the counterparty to such transaction or its affiliate expects to purchase shares of VeriSign common stock concurrently with, or shortly after the offering of the debentures and expects to purchase or sell shares of VeriSign common stock in secondary market transactions during the term of the accelerated share repurchase program. VeriSign intends to use any remaining net proceeds for general corporate purposes.

If the initial purchaser’s overallotment option is exercised, VeriSign intends to use the additional net proceeds to repurchase additional shares of its common stock.

This announcement is neither an offer to sell nor a solicitation of an offer to buy any of these securities and shall not constitute an offer, solicitation or sale in any jurisdiction in which such offer, solicitation or sale is unlawful.

The debentures have not been registered under the Securities Act of 1933, as amended, or any state securities laws and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements.

EXCERPTS ON THIS PAGE:

8-K
Aug 15, 2007
8-K
Aug 13, 2007

RELATED TOPICS for VRSN:

Wikinvest © 2006, 2007, 2008, 2009, 2010, 2011, 2012. Use of this site is subject to express Terms of Service, Privacy Policy, and Disclaimer. By continuing past this page, you agree to abide by these terms. Any information provided by Wikinvest, including but not limited to company data, competitors, business analysis, market share, sales revenues and other operating metrics, earnings call analysis, conference call transcripts, industry information, or price targets should not be construed as research, trading tips or recommendations, or investment advice and is provided with no warrants as to its accuracy. Stock market data, including US and International equity symbols, stock quotes, share prices, earnings ratios, and other fundamental data is provided by data partners. Stock market quotes delayed at least 15 minutes for NASDAQ, 20 mins for NYSE and AMEX. Market data by Xignite. See data providers for more details. Company names, products, services and branding cited herein may be trademarks or registered trademarks of their respective owners. The use of trademarks or service marks of another is not a representation that the other is affiliated with, sponsors, is sponsored by, endorses, or is endorsed by Wikinvest.
Powered by MediaWiki