TTM Tech to offer $125M of convertible senior notes

Circuit board maker TTM Technologies Inc. said Thursday that it will offer $125 million of convertible senior notes due 2015 through an underwritten public offering.

TTM shares fell $1.73, or 12.2 percent, to $12.49. In the past year, the stock has traded between $7.83 and $14.73.

The company plans to enter convertible note hedge transactions in relation to the offering, which are meant to lower potential dilution to the company's common shareholders when any notes are converted. TTM also plans to enter warrant transactions at the same time as the offering, and said this would bring in additional proceeds.

TTM expects to use part of the proceeds from the offering to pay for the convertible note hedge transactions. The company said this cost will be offset somewhat by proceeds it expects to gain from the warrant sales.

TTM said if underwriters exercise their option to buy additional notes, the company might use some of the proceeds from the additional notes' sale to enter more convertible note hedge and warrant transactions.

The company anticipates using proceeds from the offering that are left after the net cost of the convertible note hedge transactions and warrant transactions to repay its term loan under its senior credit facility, and will put remaining proceeds toward general corporate uses, such as possible acquisitions.

TTM said the offering will be made under a shelf registration statement already filed with the Securities and Exchange Commission.