DOW JONES NEWSWIRES
Finisar Corp. (FNSR) said it has launched separate exchange
offers to swap common stock and cash at a steep discount for up to
$95 million of two series of notes as it looks to reduce its
debt.
Separately, the company announced the sale of its network tools
division to JDS Uniphase Inc. (JDSU) for about $40.6 million. Part
of the proceeds will be used to pay the cash portion of the
exchange offers. It expects the deal to close Wednesday.
Finisar's shares were recently up 8.5% at 50 cents in premarket
trading. The stock is off 46% in the last month.
Broadband-product producers such as Finisar have been hurt as
telecommunications operators slow purchases and reduce spending on
information-technology products. Finisar has posted just one
profitable quarter in the last two years, as write-downs have wiped
away higher sales, which have been boosted by its acquisition of
Optium Corp. last year.
"The recent Optium merger helped underscore the fact that we are
primarily an optics company and that, for the network tools
business to continue to grow and be successful, it needs to have a
larger presence and a broader product line," Executive Chairman
Jerry Rawls said.
Finisar will exchange cash and stock for up to $37.5 million, or
75%, of its 2.5% convertible subordinated notes due next year and
up to $57.5 million, or 63%, of its 2.5% convertible senior
subordinated notes due next year.
Holders will get between $700 and $750 in the modified Dutch
auction procedure for each $1,000 of notes tendered. Payment will
be $525 in cash and the rest in stock.
The offer expires Aug. 6 at 5 p.m. EDT.
-By Kerry Grace Benn, Dow Jones Newswires; 212-416-2353;
kerry.benn@dowjones.com