Oclaro Inc of San Jose, CA, USA (which provides lasers and optical components, modules and subsystems for optical communications) says that holders of all $25m of the 7.5% exchangeable senior secured second lien notes due 2018 have exercised their right to exchange their notes for shares of the firm's common stock.
"This transaction is another indicator of our recovery as we position Oclaro for a healthy future," says CEO Greg Dougherty. "The exchange of this debt to equity is another milestone in Oclaro's recent restructuring efforts," he adds. "It reinforces to our customers, employees and shareholders that we are executing on efforts to improve our balance sheet, which is now largely debt-free."
The exchange rate for the exchanges was 541.7118 shares of common stock per $1000 in principal amount of notes, equivalent to an exchange price of about $1.846 per share. Accordingly, the firm will issue 13,542,791 shares of common stock in connection with the exchanges, with cash payable in lieu of fractional shares. In addition, pursuant to the terms of the indenture governing the notes, the exchanging holders were entitled to interest make-whole premium in connection with the exchanges, which totalled about $8.3m.
As of 24 December, no notes will remain outstanding.
