| Term sheet | Filed pursuant to Rule 433 | |
| File No. 333-143490 | ||
| June 5, 2007 |
Issuer:
|
Ciena Corporation | |
Ticker / Exchange:
|
CIEN / NASDAQ | |
Title of securities:
|
0.875% Convertible Senior Notes Due 2017 | |
Aggregate principal amount offered: |
$450,000,000 | |
Principal amount per note: |
$1,000.00 | |
Issue price:
|
100% | |
Over-allotment option:
|
$50,000,000 | |
Annual interest rate:
|
0.875% per year, accruing from June 11, 2007 | |
Conversion premium:
|
Approximately 15% over the closing price on NASDAQ of $33.17 on June 5, 2007 | |
Conversion price:
|
Approximately $38.15 per share of common stock | |
Conversion rate:
|
26.2154 shares of common stock per $1,000.00 principal amount notes (subject to adjustment) | |
Trustee:
|
The Bank of New York | |
Interest payment dates: |
June 15 and December 15 of each year, beginning December 15, 2007 | |
Maturity date:
|
June 15, 2017 | |
Fixed put dates:
|
None | |
Dividend protection:
|
The conversion rate will be adjusted upward for any cash dividends. | |
Repurchase at the
option of the holder
upon fundamental
change:
|
Upon a fundamental change, holders may, subject to certain exceptions, require the Issuer to repurchase for cash all or a portion of their 0.875% convertible senior notes at a repurchase price equal to 100% of the principal amount of the 0.875% convertible senior notes to be repurchased, plus accrued and unpaid interest, if any, to the repurchase date. | |
Redemption:
|
Issuer may not redeem the 0.875% convertible senior notes prior to the maturity date. | |
Ranking:
|
The 0.875% convertible senior notes will constitute part of Issuer’s senior debt. They will rank equally with all of Issuer’s other senior unsecured debt. | |
Use of proceeds:
|
Issuer intends to use approximately $38.25 million of the net proceeds from the offering (or approximately $42.50 million if the underwriter exercises its option to purchase additional notes in full) to purchase a call spread option on Issuer’s common stock that is intended to limit exposure to potential dilution from conversion of the notes. | |
| Issuer intends to use the remaining net proceeds from the offering for general corporate purposes. These purposes may include the repurchase of all or a portion of Issuer’s outstanding 3.75% Convertible Senior Notes due 2008, or the repayment of the principal amount of those notes at maturity. Issuer may acquire the outstanding 3.75% convertible notes through tender offers, open market purchases, privately negotiated transactions or otherwise. | ||
Trade date:
|
June 6, 2007 | |
Settlement date:
|
June 11, 2007 | |
CUSIP:
|
171779AE1 | |
ISIN NUMBER:
|
US171779AE10 | |
Bookrunning manager:
|
Deutsche Bank Securities | |
Adjustment to
conversion rate upon a
specified fundamental
change:
|
Holders who convert their 0.875% convertible senior notes in connection with a specified fundamental change will be, under certain circumstances, entitled to a make-whole premium in the form of an increase in the conversion rate for 0.875% convertible senior notes surrendered for conversion in connection with such fundamental change. The following table sets forth the stock price, effective date and number of make-whole shares to be added to the conversion rate per $1,000.00 principal amount of the 0.875% convertible senior notes. |
| Stock Price | ||||||||||||||||||||||||||||||||||||||||||||||||
Effective Date |
$ | 33.17 | $ | 37 | $ | 41 | $ | 45 | $ | 50 | $ | 55 | $ | 60 | $ | 70 | $ | 80 | $ | 90 | $ | 100 | $ | 125 | ||||||||||||||||||||||||
June 5, 2007 |
3.93 | 3.20 | 2.55 | 2.06 | 1.59 | 1.24 | 0.98 | 0.61 | 0.38 | 0.24 | 0.14 | 0.02 | ||||||||||||||||||||||||||||||||||||
June 15, 2008 |
3.93 | 3.35 | 2.66 | 2.14 | 1.65 | 1.28 | 1.01 | 0.63 | 0.39 | 0.24 | 0.14 | 0.02 | ||||||||||||||||||||||||||||||||||||
June 15, 2009 |
3.93 | 3.49 | 2.76 | 2.21 | 1.69 | 1.31 | 1.02 | 0.63 | 0.39 | 0.23 | 0.14 | 0.02 | ||||||||||||||||||||||||||||||||||||
June 15, 2010 |
3.93 | 3.63 | 2.85 | 2.26 | 1.72 | 1.32 | 1.02 | 0.62 | 0.38 | 0.22 | 0.13 | 0.02 | ||||||||||||||||||||||||||||||||||||
June 15, 2011 |
3.93 | 3.74 | 2.91 | 2.29 | 1.72 | 1.30 | 1.00 | 0.59 | 0.35 | 0.20 | 0.11 | 0.01 | ||||||||||||||||||||||||||||||||||||
June 15, 2012 |
3.93 | 3.82 | 2.93 | 2.28 | 1.68 | 1.26 | 0.95 | 0.54 | 0.31 | 0.17 | 0.09 | 0.00 | ||||||||||||||||||||||||||||||||||||
June 15, 2013 |
3.93 | 3.85 | 2.90 | 2.21 | 1.60 | 1.16 | 0.86 | 0.47 | 0.25 | 0.13 | 0.06 | 0.00 | ||||||||||||||||||||||||||||||||||||
June 15, 2014 |
3.93 | 3.79 | 2.77 | 2.05 | 1.43 | 1.00 | 0.71 | 0.36 | 0.17 | 0.08 | 0.03 | 0.00 | ||||||||||||||||||||||||||||||||||||
June 15, 2015 |
3.93 | 3.56 | 2.48 | 1.74 | 1.13 | 0.74 | 0.48 | 0.20 | 0.08 | 0.02 | 0.00 | 0.00 | ||||||||||||||||||||||||||||||||||||
June 15, 2016 |
3.93 | 2.99 | 1.85 | 1.13 | 0.60 | 0.32 | 0.17 | 0.04 | 0.00 | 0.00 | 0.00 | 0.00 | ||||||||||||||||||||||||||||||||||||
June 15, 2017 |
0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | ||||||||||||||||||||||||||||||||||||
| • | between two stock price amounts on the table or the conversion date is between two dates on the table, the number of additional shares will be determined by straight-line interpolation between the number of additional shares set forth for the higher and lower stock price amounts and the two dates, as applicable, based on a 365-day year; | ||
| • | more than $125.00 per share (subject to adjustment), no adjustment will be made to the conversion rate as a result of the fundamental change; or | ||
| • | less than $33.17 per share (subject to adjustment), no adjustment will be made to the conversion rate as a result of the fundamental change. |