NetApp plans to sell $1.1B of notes - Silicon Valley / San Jose Business Journal:

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billion of convertible senior notes duein 2013. Sunnyvale-basedx NetApp (NASDAQ:NTAP) said the 1.75 percent notes will be sold to qualifiedfinstitutional buyers, and the company grantecd the initial purchasers of the notes an option to purchas e up to an additionak $165 million to cover over-allotments. The sale is expected to close onJune 10. The notes will be subject to certain conditions, into cash up to the principal amount ofnotes and, with respect to any excesx conversion value, into shares of NetApp's commonb stock. The initial converstion price ofabout $31.85 per share representsd a premium of 35 percen to the closing price of NetApp'ds common stock on June 4.
In connection with the offering, NetAppo has entered into convertible note hedge transactions with some of which are affiliates of the initial purchasers of the and intends to use a portion of the net proceed from this offering to pay for the convertible notehedgwe transactions. NetApp has also entered into separate warrantt transactions with the hedge counterparties and will use the proceedsd of those warrant transactions to partiall y offset the cost of the convertiblw notehedge transactions. The warrants have an exercisr priceof $41.28, which is about 75 percenft above the closing price of NetApp's common stockm on June 4. NetApp expects to use abour $273.
6 million of the net proceedd of the offering to repurchase sharese of its common stock in negotiated transactions withinstitutional investors.