CA closes sale of $460 M convertible senior notes
By siliconindia   |   Thursday, 12 December 2002, 20:30 IST
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ISLANDIA: Computer Associates International, Inc. (NYSE: CA) Thursday announced that it has completed a private placement of $460 million aggregate principal amount of 1-5/8 percent Convertible Senior Notes due 2009, issued pursuant to SEC Rule 144A and offshore under SEC Regulation S. CA expects to use the net proceeds generated from the offering to refinance existing indebtedness and for general corporate purposes. In addition, CA used approximately $73 million of the proceeds to enter into a call spread repurchase transaction on its common stock to limit potential dilution from conversion of the Notes. The call spread effectively provides full protection from dilution up to $30 per share, or just over 100% of the price of the stock on the pricing date. "Over the past year, we have taken significant steps to reduce our debt load and strengthen our cash position," said Sanjay Kumar, CA chairman and CEO. "While we were prepared to retire debt due over the next six months through existing cash-on-hand and cash flow generation, we have taken advantage of favorable market conditions to build cash and to position CA to invest aggressively in its businesses and to better serve customers, grow revenue and increase market share." The securities to be offered have not been registered under the Securities Act of 1933, as amended, or any state securities laws, and unless so registered, may not be offered or sold in the United States except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and applicable state securities laws.

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