Xerox ( XRX) detailed its refinancing package, saying it will sell 40 million common shares, 8 million shares of mandatory convertible preferred stock and $750 million of 7-year senior unsecured notes due 2010.

The company also said that it finalized the terms of a new revolving credit facility. Both transactions will help Xerox finish a refinancing plan intended to deleverage its balance sheet and extend debt maturities.

The company said it will sell about 40 million common shares at $10.25 each and will issue 8 million shares of 3-year mandatory convertible preferred stock at $100 a share. The mandatory convertible preferred stock will have a dividend yield of $6.25 a share, Xerox said, and a conversion premium of 20% over the common stock offering price of $10.25 a share.

Xerox said it will also issue $750 million of 7-year senior unsecured notes due 2010 and bearing interest at 7.125%. Further, $500 million of 10-year senior unsecured notes due 2013 will be issued, bearing interest at 7.625%.

Additionally, Xerox said it entered into an agreement with Citigroup, Deutsche Bank, Goldman Sachs, J.P. Morgan, Merrill Lynch and UBS for a new $1 billion credit facility consisting of a $700 million revolving facility and a $300 million term loan, both maturing in September 2008. This new credit facility, expected to close on June 25, will go into effect upon successful completion of the company's common stock and mandatory convertible preferred stock offerings.

Shares of the company were up slightly in premarket trading at $10.43.

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