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ModusLink prices USD90m convertible senior notes

14 March 2014

ModusLink Global Solutions, Inc. (NASDAQ: MLNK) said it has priced its offering of USD90m aggregate principal amount of its 5.25 percent convertible senior notes due 2019.

The notes are being offered and sold to qualified institutional buyers. The offering is expected to close on March 18, 2014. ModusLink also granted to the initial purchaser of the notes a 30-day option to purchase up to an additional USD10m aggregate principal amount of the notes.

The notes will mature on March 1, 2019, unless earlier repurchased or converted. Interest will be payable semi-annually in arrears at the rate of 5.25 percent per annum on March 1 and September 1 of each year, beginning on September 1, 2014.

The notes will be convertible into shares of ModusLink´s common stock at an initial conversion rate of 166.2593 shares of common stock per USD1,000 principal amount of notes. The initial conversion price represents a conversion premium of approximately 23 percent relative to USD4.89, which was the last reported sale price of ModusLink´s common stock on the NASDAQ Global Select Market on March 12, 2014.

ModusLink said it intends to use the net proceeds from the offering for general corporate purposes, which may include potential acquisitions and other strategic business opportunities. No material acquisitions are probable at this time.


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