General | ||
Issuer: | ADC Telecommunications, Inc. |
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Ticker/Exchange: | ADCT / NASDAQ |
|
Last sale price of ADCT common stock: | $15.43 (December 19, 2007) |
|
3.50% Convertible Subordinated Notes due 2015 | ||
Aggregate principal amount offered: | $200 million |
|
Over-allotment option: | $25 million |
|
Issue price: | 100% |
|
Underwriting discount: | 2.375% |
|
Annual interest rate: | 3.50% per year, accruing from December 26, 2007 |
|
Maturity date: | July 15, 2015 |
|
Interest payment dates: | January 15 and July 15 of each year, beginning July 15, 2008 |
|
Record dates: | January 1 and July 1 of each year |
|
Conversion premium: | 75% |
|
Initial base conversion price: | Approximately $27.00 per share of common stock |
|
Initial base conversion rate: | 37.0336 shares of common stock per $1,000 principal amount
of notes (subject to adjustment) |
|
Incremental share factor: | 27.7752 shares of common stock per $1,000 principal amount
of notes (subject to adjustment) |
|
CUSIP: | 000886 AE1 |
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ISIN: | US000886AE11 |
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Repurchase at the option of the holder upon a fundamental change: | Upon a fundamental change, the holders may require the
Issuer to repurchase all or a portion of their notes for
cash at a repurchase price equal to 100% of the principal
amount of the notes, plus accrued and unpaid interest, if
any, to, but excluding, the repurchase date. |
|
Adjustment to conversion rate upon a make-whole fundamental change: | Holders who convert their notes in connection with a
make-whole fundamental change are entitled to a make-whole
premium in the form of an increase in the conversion rate
for notes surrendered for conversion in connection with
such fundamental change. The following table sets forth the
stock price, adjustment date and number of additional
shares to be added to the conversion rate per $1,000
principal amount of the 2015 notes. |
|
The maximum number of additional shares to be added to the
conversion rate per $1,000 principal amount of 2015 notes
is 27.7752. |
Dec. 26, | July 15, | July 15, | July 15, | July 15, | July 15, | July 15, | July 15, | July 15, | ||||||||||||||||||||||||||||
Stock Price | 2007 | 2008 | 2009 | 2010 | 2011 | 2012 | 2013 | 2014 | 2015 | |||||||||||||||||||||||||||
$15.43 |
27.7752 | 27.7752 | 27.7752 | 27.7752 | 27.7752 | 27.7752 | 27.7752 | 27.7752 | 27.7752 | |||||||||||||||||||||||||||
$16.00 |
27.1097 | 27.3835 | 26.1598 | 25.4664 | 25.4664 | 25.4664 | 25.4664 | 25.4664 | 26.3130 | |||||||||||||||||||||||||||
$18.00 |
25.0953 | 25.1741 | 23.7001 | 22.2016 | 20.7230 | 19.3298 | 18.5220 | 18.5220 | 19.2745 | |||||||||||||||||||||||||||
$20.00 |
23.8072 | 23.7563 | 22.1417 | 20.4347 | 18.6498 | 16.8032 | 14.9366 | 13.1590 | 13.6437 | |||||||||||||||||||||||||||
$22.00 |
22.9892 | 22.8533 | 21.1722 | 19.3536 | 17.3904 | 15.2607 | 12.9364 | 10.3376 | 9.0368 | |||||||||||||||||||||||||||
$24.00 |
22.4815 | 22.2909 | 20.5929 | 18.7296 | 16.6794 | 14.3962 | 11.8044 | 8.6857 | 5.2162 | |||||||||||||||||||||||||||
$26.00 |
22.1814 | 21.9571 | 20.2747 | 18.4116 | 16.3382 | 13.9949 | 11.2829 | 7.9198 | 2.4144 | |||||||||||||||||||||||||||
$28.00 |
21.0295 | 20.7858 | 19.1398 | 17.3065 | 15.2527 | 12.9142 | 10.1875 | 6.7931 | 0.0000 | |||||||||||||||||||||||||||
$30.00 |
19.1789 | 18.9258 | 17.3289 | 15.5441 | 13.5377 | 11.2469 | 8.5760 | 5.2920 | 0.0000 | |||||||||||||||||||||||||||
$32.00 |
17.6161 | 17.3602 | 15.8197 | 14.0947 | 12.1529 | 9.9362 | 7.3644 | 4.2708 | 0.0000 | |||||||||||||||||||||||||||
$34.00 |
16.2805 | 16.0265 | 14.5460 | 12.8867 | 11.0191 | 8.8917 | 6.4423 | 3.5732 | 0.0000 | |||||||||||||||||||||||||||
$36.00 |
15.1271 | 14.8780 | 13.4585 | 11.8676 | 10.0787 | 8.0476 | 5.7306 | 3.0903 | 0.0000 | |||||||||||||||||||||||||||
$38.00 |
14.1216 | 13.8793 | 12.5205 | 10.9981 | 9.2888 | 7.3561 | 5.1723 | 2.7478 | 0.0000 | |||||||||||||||||||||||||||
$40.00 |
13.2374 | 13.0033 | 11.7035 | 10.2483 | 8.6176 | 6.7815 | 4.7266 | 2.4971 | 0.0000 | |||||||||||||||||||||||||||
$45.00 |
11.4329 | 11.2214 | 10.0590 | 8.7608 | 7.3136 | 5.7008 | 3.9325 | 2.0906 | 0.0000 | |||||||||||||||||||||||||||
$50.00 |
10.0459 | 9.8573 | 8.8154 | 7.6547 | 6.3668 | 4.9438 | 3.4057 | 1.8341 | 0.0000 | |||||||||||||||||||||||||||
$55.00 |
8.9451 | 8.7777 | 7.8398 | 6.7971 | 5.6446 | 4.3788 | 3.0223 | 1.6438 | 0.0000 | |||||||||||||||||||||||||||
$60.00 |
8.0487 | 7.9003 | 7.0518 | 6.1100 | 5.0717 | 3.9358 | 2.7236 | 1.4908 | 0.0000 | |||||||||||||||||||||||||||
$65.00 |
7.3034 | 7.1718 | 6.4004 | 5.5449 | 4.6034 | 3.5755 | 2.4802 | 1.3628 | 0.0000 | |||||||||||||||||||||||||||
$70.00 |
6.6732 | 6.5563 | 5.8516 | 5.0704 | 4.2113 | 3.2743 | 2.2757 | 1.2535 | 0.0000 | |||||||||||||||||||||||||||
$75.00 |
6.1327 | 6.0288 | 5.3822 | 4.6653 | 3.8771 | 3.0175 | 2.1004 | 1.1590 | 0.0000 | |||||||||||||||||||||||||||
$80.00 |
5.6637 | 5.5711 | 4.9754 | 4.3146 | 3.5880 | 2.7950 | 1.9478 | 1.0762 | 0.0000 | |||||||||||||||||||||||||||
$85.00 |
5.2525 | 5.1701 | 4.6191 | 4.0077 | 3.3349 | 2.6000 | 1.8137 | 1.0032 | 0.0000 | |||||||||||||||||||||||||||
$90.00 |
4.8889 | 4.8154 | 4.3042 | 3.7365 | 3.1112 | 2.4274 | 1.6946 | 0.9383 | 0.0000 | |||||||||||||||||||||||||||
$95.00 |
4.5650 | 4.4995 | 4.0238 | 3.4949 | 2.9118 | 2.2734 | 1.5882 | 0.8803 | 0.0000 | |||||||||||||||||||||||||||
$175.00 |
1.9441 | 1.9403 | 1.7486 | 1.5311 | 1.2863 | 1.0125 | 0.7137 | 0.4026 | 0.0000 |
| if the stock price is between two stock price amounts on the table above or the adjustment date is between two adjustment dates on the table, the number of additional shares will be determined by a straight-line interpolation between the number of additional shares set forth for the higher and lower stock price amounts and the earlier and later adjustment dates based on a 365-day year, as applicable; | ||
| if the stock price is in excess of $175.00 per share of common stock (subject to adjustment in the same manner as the stock price), no increase in the conversion rate will be made; and | ||
| if the stock price is less than $15.43 per share of common stock (subject to adjustment in the same manner as the stock price), no increase in the conversion rate will be made. |
3.50% Convertible Subordinated Notes due 2017 | ||
Aggregate principal amount offered: | $200 million |
|
Over-allotment option: | $25 million |
|
Issue price: | 100% |
|
Underwriting discount: | 2.375% |
|
Annual interest rate: | 3.50% per year, accruing from December 26, 2007 |
|
Maturity date: | July 15, 2017 |
|
Interest payment dates: | January 15 and July 15 of each year, beginning July 15, 2008 |
|
Record dates: | January 1 and July 1 of each year |
|
Conversion premium: | 85% |
|
Initial base conversion price: | Approximately $28.55 per share of common stock |
|
Initial base conversion rate: | 35.0318 shares of common stock per $1,000 principal amount
of notes (subject to adjustment) |
|
Incremental share factor: | 29.7770 shares of common stock per $1,000 principal amount
of notes (subject to adjustment) |
|
CUSIP: | 000886 AF8 |
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ISIN: | US000886AF85 |
|
Repurchase at the option of the holder upon a fundamental change: | Upon a fundamental change, the holders may require the
Issuer to repurchase all or a portion of their notes for
cash at a repurchase price equal to 100% of the principal
amount of the notes, plus accrued and unpaid interest, if
any, to, but excluding, the repurchase date. |
|
Adjustment to conversion rate upon a make-whole fundamental change: | Holders who convert their notes in connection with a
make-whole fundamental change are entitled to a make-whole
premium in the form of an increase in the conversion rate
for notes surrendered for conversion in connection with
such fundamental change. The following table sets forth the
stock price, adjustment date and number of make-whole
shares to be added to the conversion rate per $1,000
principal amount of the 2017 notes. |
The maximum number of additional shares to be added to the
conversion rate per $1,000 principal amount of 2017 notes
is 29.7770. |
Dec. 26, | July 15, | July 15, | July 15, | July 15, | July 15, | July 15, | July 15, | July 15, | July 15, | July 15, | ||||||||||||||||||||||||||||||||||
Stock Price | 2007 | 2008 | 2009 | 2010 | 2011 | 2012 | 2013 | 2014 | 2015 | 2016 | 2017 | |||||||||||||||||||||||||||||||||
$15.43 |
29.7770 | 29.7770 | 29.7770 | 29.7770 | 29.7770 | 29.7770 | 29.7770 | 29.7770 | 29.7770 | 29.7770 | 29.7770 | |||||||||||||||||||||||||||||||||
$16.00 |
29.2885 | 29.5244 | 28.1911 | 27.4682 | 27.4682 | 27.4682 | 27.4682 | 27.4682 | 27.4682 | 27.4682 | 28.3000 | |||||||||||||||||||||||||||||||||
$18.00 |
27.7488 | 27.8440 | 26.3705 | 24.8579 | 23.3419 | 21.8649 | 20.5238 | 20.5238 | 20.5238 | 20.5238 | 21.2631 | |||||||||||||||||||||||||||||||||
$20.00 |
26.7661 | 26.7687 | 25.2314 | 23.6074 | 21.9163 | 20.1770 | 18.4280 | 16.7448 | 15.2468 | 14.9682 | 15.6336 | |||||||||||||||||||||||||||||||||
$22.00 |
26.1397 | 26.0814 | 24.5289 | 22.8586 | 21.0776 | 19.1874 | 17.2014 | 15.1445 | 13.0542 | 10.9958 | 11.0277 | |||||||||||||||||||||||||||||||||
$24.00 |
25.7462 | 25.6483 | 24.1116 | 22.4373 | 20.6243 | 18.6616 | 16.5449 | 14.2613 | 11.7828 | 9.0009 | 7.1898 | |||||||||||||||||||||||||||||||||
$26.00 |
25.5074 | 25.3844 | 23.8825 | 22.2317 | 20.4252 | 18.4441 | 16.2727 | 13.8732 | 11.1755 | 7.9545 | 3.9895 | |||||||||||||||||||||||||||||||||
$28.00 |
25.3727 | 25.2343 | 23.7787 | 22.1685 | 20.3936 | 18.4305 | 16.2570 | 13.8216 | 11.0338 | 7.6226 | 1.9074 | |||||||||||||||||||||||||||||||||
$30.00 |
23.8881 | 23.7223 | 22.3191 | 20.7597 | 19.0322 | 17.1108 | 14.9706 | 12.5544 | 9.7681 | 6.3537 | 0.0000 | |||||||||||||||||||||||||||||||||
$32.00 |
22.0995 | 21.9309 | 20.5830 | 19.0801 | 17.4093 | 15.5443 | 13.4602 | 11.0992 | 8.3755 | 5.0793 | 0.0000 | |||||||||||||||||||||||||||||||||
$34.00 |
20.5515 | 20.3834 | 19.0916 | 17.6477 | 16.0385 | 14.2386 | 12.2241 | 9.9408 | 7.3164 | 4.2054 | 0.0000 | |||||||||||||||||||||||||||||||||
$36.00 |
19.1990 | 19.0336 | 17.7972 | 16.4126 | 14.8672 | 13.1365 | 11.1991 | 9.0057 | 6.5006 | 3.6017 | 0.0000 | |||||||||||||||||||||||||||||||||
$38.00 |
18.0070 | 17.8459 | 16.6634 | 15.3373 | 13.8555 | 12.1954 | 10.3382 | 8.2404 | 5.8625 | 3.1773 | 0.0000 | |||||||||||||||||||||||||||||||||
$40.00 |
16.9485 | 16.7927 | 15.6620 | 14.3926 | 12.9734 | 11.3833 | 9.6064 | 7.6052 | 5.3548 | 2.8705 | 0.0000 | |||||||||||||||||||||||||||||||||
$45.00 |
14.7567 | 14.6160 | 13.6043 | 12.4665 | 11.1937 | 9.7692 | 8.1833 | 6.4114 | 4.4554 | 2.3857 | 0.0000 | |||||||||||||||||||||||||||||||||
$50.00 |
13.0423 | 12.9173 | 12.0090 | 10.9866 | 9.8429 | 8.5649 | 7.1476 | 5.5751 | 3.8627 | 2.0896 | 0.0000 | |||||||||||||||||||||||||||||||||
$55.00 |
11.6630 | 11.5529 | 10.7338 | 9.8112 | 8.7794 | 7.6280 | 6.3551 | 4.9500 | 3.4326 | 1.8735 | 0.0000 | |||||||||||||||||||||||||||||||||
$60.00 |
10.5282 | 10.4315 | 9.6894 | 8.8529 | 7.9175 | 6.8748 | 5.7244 | 4.4588 | 3.0980 | 1.7006 | 0.0000 | |||||||||||||||||||||||||||||||||
$65.00 |
9.5774 | 9.4927 | 8.8172 | 8.0552 | 7.2029 | 6.2533 | 5.2072 | 4.0583 | 2.8251 | 1.5562 | 0.0000 | |||||||||||||||||||||||||||||||||
$70.00 |
8.7685 | 8.6946 | 8.0769 | 7.3796 | 6.5993 | 5.7302 | 4.7732 | 3.7230 | 2.5957 | 1.4329 | 0.0000 | |||||||||||||||||||||||||||||||||
$75.00 |
8.0716 | 8.0072 | 7.4402 | 6.7993 | 6.0819 | 5.2825 | 4.4024 | 3.4364 | 2.3989 | 1.3262 | 0.0000 | |||||||||||||||||||||||||||||||||
$80.00 |
7.4648 | 7.4088 | 6.8863 | 6.2951 | 5.6327 | 4.8943 | 4.0811 | 3.1880 | 2.2276 | 1.2329 | 0.0000 | |||||||||||||||||||||||||||||||||
$85.00 |
6.9315 | 6.8829 | 6.3998 | 5.8525 | 5.2387 | 4.5540 | 3.7994 | 2.9699 | 2.0769 | 1.1506 | 0.0000 | |||||||||||||||||||||||||||||||||
$90.00 |
6.4589 | 6.4170 | 5.9689 | 5.4606 | 4.8901 | 4.2529 | 3.5501 | 2.7768 | 1.9431 | 1.0774 | 0.0000 | |||||||||||||||||||||||||||||||||
$95.00 |
6.0373 | 6.0013 | 5.5846 | 5.1112 | 4.5792 | 3.9845 | 3.3278 | 2.6043 | 1.8234 | 1.0120 | 0.0000 | |||||||||||||||||||||||||||||||||
$175.00 |
2.6145 | 2.6238 | 2.4584 | 2.2663 | 2.0457 | 1.7938 | 1.5098 | 1.1903 | 0.8400 | 0.4733 | 0.0000 |
| if the stock price is between two stock price amounts on the table above or the adjustment date is between two adjustment dates on the table, the number of additional shares will be determined by a straight-line interpolation between the number of additional shares set forth for the higher and lower stock price amounts and the earlier and later adjustment dates based on a 365-day year, as applicable; | ||
| if the stock price is in excess of $175.00 per share of common stock (subject to adjustment in the same manner as the stock price), no increase in the conversion rate will be made; and | ||
| if the stock price is less than $15.43 per share of common stock (subject to adjustment in the same manner as the stock price), no increase in the conversion rate will be made. |
Other Offering Information | ||
Trade date: | December 20, 2007 |
|
Settlement date: | December 26, 2007 |
|
Joint book-running managers: | Credit
Suisse Securities (USA) LLC, Morgan Stanley & Co. Incorporated |
|
Co-managers: | J.P.
Morgan Securities Inc., Bear, Stearns & Co, Inc. |
|
Net proceeds: | The Issuer estimates that the net proceeds from the
sale of the notes, after deducting underwriting
discounts and estimated offering expenses, will be
approximately $390 million (or approximately $439
million assuming exercise
of the underwriters over-allotment option in full). |