Finisar Nips 'n' Tucks
The most recent move includes a $130 million offering of convertible notes, being used for a refinancing. Finisar also shut down its Munich facility, the former Aifotec, during the summer.
First the notes: Finisar early this week announced a plan to sell $100 million in convertible notes. Once the deal was priced, a follow-up release pegged the figure at $130 million, with an interest rate of 2.5 percent (see Finisar Plans $100M Note Offering and Finisar Plans $130M Note Sale).
It's tempting to think Finisar might use the money for an acquisition, but Finisar says the deal is a refinancing, swapping out the 5.25 percent interest rate of previous notes. "We'll use some of those proceeds to buy back our older notes," says Steve Workman, Finisar chief financial officer.
Separately, Finisar closed Finisar Europe, the Munich office acquired with Aifotec.
Some Aifotec executives had split from Finisar to start Aifotec Fiberoptics GmbH, having acquired some products from Finisar in a management buyout (see Germany's Aifotec Is Reborn). But that left about 20 employees and most of Aifotec's equipment still in the hands of Finisar Europe. That operation was shut down during the summer, with the equipment and four employees transferred to Finisar's Sunnyvale, Calif., offices, Workman says.
It's similar to what Finisar did with its Demeter operations, in El Monte, Calif., which were shut down and moved to a Fremont, Calif., facility that Finisar picked up with the acquisition of Genoa Corp. (see Finisar Acquires Genoa).
Restructuring costs for the Munich closing totaled $2.2 million, according to documents filed with the Securities and Exchange Commission (SEC). Finisar acquired Aifotec in 2002 for roughly $2.3 million (see Finisar Acquires AIFOtec).
— Craig Matsumoto, Senior Editor, Light Reading