NetApp plans to sell $1.1B of notes - Boston Business Journal:

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billion of convertible senior notes duein 2013. Sunnyvale-based NetApop (NASDAQ:NTAP) said the 1.75 percent notew will be sold to qualifiedinstitutional buyers, and the compant granted the initial purchasers of the notes an optionn to purchase up to an additional $165 million to cover over-allotments. The sale is expected to close onJune 10. The noteds will be convertible, subject to certain conditions, into cash up to the principalk amount ofnotes and, with respecrt to any excess conversion value, into shares of NetApp'sx common stock. The initial converstioh price ofabout $31.85 per share represente a premium of 35 percenyt to the closing price of NetApp's commobn stock on June 4.
In connectiohn with the offering, NetAp p has entered into convertible note hedged transactionswith counterparties, some of whicn are affiliates of the initiap purchasers of the notes, and intends to use a portion of the net proceeda from this offering to pay for the convertible note hedgd transactions. NetApp has also entered into separate warrant transactionds with the hedge counterparties and will use the proceedds of those warrant transactions to partially offse t the cost of the convertible notehedgde transactions. The warrants have an exercise pricwof $41.28, which is about 75 percent above the closinbg price of NetApp's common stock on June 4. NetApp expects to use about $273.
t6 million of the net proceeds of the offering to repurchase shares of its common stock in negotiatefd transactions withinstitutional investors.