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EMC Prices Senior Notes

It sells $3.45 billion worth.

Data storage company



said Tuesday that it priced $3.45 billion of convertible senior notes, up $450 million over the amount announced on Monday.

The Hopkinton, Mass.-based company said that $1.725 billion of convertible senior notes due 2011 and $1.725 billion convertible senior notes due 2013 will be sold in a private placement to qualified institutional buyers.

The 2011 and 2013 notes, with 1.75% per annum interest rate payable semiannually, will be convertible at the holder's option during specified periods, at an initial conversion rate of 62.1978 shares per $1,000 principal amount of notes, representing a 27.5% conversion premium based on the closing price of $12.61 a share on Nov. 13.

The company said that in certain circumstances, the notes may be settled with cash up to the principal amount. With respect to any conversion value in excess of the principal amount, EMC has the option to settle the excess with cash, shares of EMC common stock, or a combination of cash and common stock.

The company intends to use the proceeds to repay $2.2 billion borrowed under a senior credit facility to finance its acquisition of

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. The company also plans to use a part of the proceeds to fund convertible notes hedge transaction that it has entered into with one or more of the initial purchasers of the notes, their affiliates or other financial institutions.

The company also said it would purchase about $946 million worth of shares of its common stock with proceeds from the transactions and $34 million of its cash on hand, in privately negotiated transactions through one or more of the initial purchasers or their affiliates.

EMC expects to spend at least $3.6 billion in 2006 repurchasing its shares and redeeming $125 million in convertible debt related to its 2003 acquisition of


, the company added.

Shares of EMC were trading up 8 cents, or 0.6%, at $12.69 Tuedsay.

This story was created through a joint venture between and IRIS.