Macrovision announced [subscription required] the offering of $175mm of convertible notes today. Of particular note is that they are also entering into a call spread arrangement (which we highlighted in detail in a previous post on Symantec's (SYMC) recent financing) and using a portion of the proceeds ($50mm) to repurchase common stock. Just like Symantec and CA (CA), they are doing a leveraged recapitalization. Instead of turning to the straight debt markets, such as high yield or bank, they have chosen to use a convertible bond as the funding vehicle. Why? Lowest cost and execution risk.
MVSN 1-yr chart: