SUNNYVALE, Calif. (AP) - Network storage company NetApp said Tuesday it
plans to sell $1.1 billion in five-year convertible senior notes to
institutional buyers.
The interest rate, conversion rate and other terms have yet to be
determined, NetApp said.
It plans to grant the underwriters an overallotment option to buy up to $165
million in additional notes.
NetApp also plans to enter into convertible note hedge transactions and
separate warrant transactions with the hedge counterparties and to use proceeds
of the warrant transactions to partially offset the cost of the convertible note
hedge transactions.
The company plans to use up to $275 million of the proceeds from the note
offering to repurchase stock from institutional investors, with the rest for
general market purposes and other transactions.
In late trading, shares of NetApp declined 61 cents to $23.35. The stock
ended the regular session up 17 cents to $23.96.
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