Symantec Will Sell $2.0 Billion Convertible Senior Notes

Symantec Corp., the security software maker that owns the Norton brand announced in a press release that it plans to sell privately $2.0 billion worth of Convertible Senior Notes.

Half of these will mature in 2011 while the rest will be due in 2013. With this move, Symantec actually takes a loan equivalent to the value of the bonds.

In certain circumstances, the bonds may be convertible into cash by the beneficiaries but for a sum no larger than the principal amount. The beneficiaries may also convert the notes into Symantec common stock, or in a certain amount of cash and in shares, at Symantec's option.

Other terms of the sale, including interest rate and conversion price will be further negotiated by Symantec and the direct purchasers of the Convertible Senior Notes.

Asides the $2.0 billion in convertible notes, Symantec also offers purchasers an option to acquire warrants of 200 million dollars.

With $1.5 billion, the company plans to repurchase common stock.