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EFI Proposes Offering of $300 Million Convertible Senior Notes Due 2019


Will use proceeds to pay costs, repurchase stock

Electronics For Imaging, Inc. (EFI) announced that it intends to offer, subject to market conditions and other factors, $300 million aggregate principal amount of convertible senior notes due 2019 in a private offering to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended. In addition, the company intends to grant to the initial purchasers of the notes the right to purchase up to an additional $45 million aggregate principal amount of the notes, exercisable within a 13-day period from, and including, the date of initial issuance.
The initial conversion rate, interest rate and certain other terms of the notes will be determined at the time of the pricing of the offering. If and when issued, the notes will be unsecured senior obligations of the company. The Notes will pay interest semi-annually in arrears on March 1 and Sept. 1 of each year, beginning on March 1, 2015. The notes will mature on Sept. 1, 2019, unless repurchased or converted in accordance with their terms prior to such date.
The company intends to use a portion of the net proceeds from the offering of the notes to pay the cost of certain convertible note hedge transactions, taking into account the proceeds to the company from the sale of warrants pursuant to certain warrant transactions and to repurchase up to $10 million of shares of the company’s common stock in privately negotiated transactions.

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