fwp
 

Issuer Free Writing Prospectus dated December 19, 2007 to
Preliminary Prospectus dated December 18, 2007
Registration Statement No. 333-148137
Filed Pursuant to Rule 433
ADC Telecommunications, Inc.
$400,000,000
aggregate principal amount of its
3.50% Convertible Subordinated Notes due 2015
and
3.50% Convertible Subordinated Notes due 2017
     This term sheet relates only to the securities described below and should be read together with the preliminary prospectus dated December 18, 2007 (including the documents incorporated by reference therein) relating to the securities before making a decision in connection with an investment in the securities. The information in this term sheet supersedes the information in the preliminary prospectus to the extent that it is inconsistent therewith. Terms used but not defined herein have the meanings ascribed to them in the preliminary prospectus.
     
General  
 
   
 
   
 
Issuer:  
ADC Telecommunications, Inc.
   
 
Ticker/Exchange:  
ADCT / NASDAQ
   
 
Last sale price of ADCT common stock:  
$15.43 (December 19, 2007)
   
 
3.50% Convertible Subordinated Notes due 2015
   
 
Aggregate principal amount offered:  
$200 million
   
 
Over-allotment option:  
$25 million
   
 
Issue price:  
100%
   
 
Underwriting discount:  
2.375%
   
 
Annual interest rate:  
3.50% per year, accruing from December 26, 2007
   
 
Maturity date:  
July 15, 2015
   
 
Interest payment dates:  
January 15 and July 15 of each year, beginning July 15, 2008
   
 
Record dates:  
January 1 and July 1 of each year
   
 
Conversion premium:  
75%
   
 
Initial base conversion price:  
Approximately $27.00 per share of common stock
   
 
Initial base conversion rate:  
37.0336 shares of common stock per $1,000 principal amount of notes (subject to adjustment)
   
 
Incremental share factor:  
27.7752 shares of common stock per $1,000 principal amount of notes (subject to adjustment)
   
 

 


 

     
CUSIP:  
000886 AE1
   
 
ISIN:  
US000886AE11
   
 
Repurchase at the option of the holder upon a fundamental change:  
Upon a fundamental change, the holders may require the Issuer to repurchase all or a portion of their notes for cash at a repurchase price equal to 100% of the principal amount of the notes, plus accrued and unpaid interest, if any, to, but excluding, the repurchase date.
   
 
Adjustment to conversion rate upon a make-whole fundamental change:  
Holders who convert their notes in connection with a make-whole fundamental change are entitled to a make-whole premium in the form of an increase in the conversion rate for notes surrendered for conversion in connection with such fundamental change. The following table sets forth the stock price, adjustment date and number of additional shares to be added to the conversion rate per $1,000 principal amount of the 2015 notes.
   
 
   
The maximum number of additional shares to be added to the conversion rate per $1,000 principal amount of 2015 notes is 27.7752.
Adjustment Date
                                                                         
    Dec. 26,     July 15,     July 15,     July 15,     July 15,     July 15,     July 15,     July 15,     July 15,  
Stock Price   2007     2008     2009     2010     2011     2012     2013     2014     2015  
$15.43
    27.7752       27.7752       27.7752       27.7752       27.7752       27.7752       27.7752       27.7752       27.7752  
$16.00
    27.1097       27.3835       26.1598       25.4664       25.4664       25.4664       25.4664       25.4664       26.3130  
$18.00
    25.0953       25.1741       23.7001       22.2016       20.7230       19.3298       18.5220       18.5220       19.2745  
$20.00
    23.8072       23.7563       22.1417       20.4347       18.6498       16.8032       14.9366       13.1590       13.6437  
$22.00
    22.9892       22.8533       21.1722       19.3536       17.3904       15.2607       12.9364       10.3376       9.0368  
$24.00
    22.4815       22.2909       20.5929       18.7296       16.6794       14.3962       11.8044       8.6857       5.2162  
$26.00
    22.1814       21.9571       20.2747       18.4116       16.3382       13.9949       11.2829       7.9198       2.4144  
$28.00
    21.0295       20.7858       19.1398       17.3065       15.2527       12.9142       10.1875       6.7931       0.0000  
$30.00
    19.1789       18.9258       17.3289       15.5441       13.5377       11.2469       8.5760       5.2920       0.0000  
$32.00
    17.6161       17.3602       15.8197       14.0947       12.1529       9.9362       7.3644       4.2708       0.0000  
$34.00
    16.2805       16.0265       14.5460       12.8867       11.0191       8.8917       6.4423       3.5732       0.0000  
$36.00
    15.1271       14.8780       13.4585       11.8676       10.0787       8.0476       5.7306       3.0903       0.0000  
$38.00
    14.1216       13.8793       12.5205       10.9981       9.2888       7.3561       5.1723       2.7478       0.0000  
$40.00
    13.2374       13.0033       11.7035       10.2483       8.6176       6.7815       4.7266       2.4971       0.0000  
$45.00
    11.4329       11.2214       10.0590       8.7608       7.3136       5.7008       3.9325       2.0906       0.0000  
$50.00
    10.0459       9.8573       8.8154       7.6547       6.3668       4.9438       3.4057       1.8341       0.0000  
$55.00
    8.9451       8.7777       7.8398       6.7971       5.6446       4.3788       3.0223       1.6438       0.0000  
$60.00
    8.0487       7.9003       7.0518       6.1100       5.0717       3.9358       2.7236       1.4908       0.0000  
$65.00
    7.3034       7.1718       6.4004       5.5449       4.6034       3.5755       2.4802       1.3628       0.0000  
$70.00
    6.6732       6.5563       5.8516       5.0704       4.2113       3.2743       2.2757       1.2535       0.0000  
$75.00
    6.1327       6.0288       5.3822       4.6653       3.8771       3.0175       2.1004       1.1590       0.0000  
$80.00
    5.6637       5.5711       4.9754       4.3146       3.5880       2.7950       1.9478       1.0762       0.0000  
$85.00
    5.2525       5.1701       4.6191       4.0077       3.3349       2.6000       1.8137       1.0032       0.0000  
$90.00
    4.8889       4.8154       4.3042       3.7365       3.1112       2.4274       1.6946       0.9383       0.0000  
$95.00
    4.5650       4.4995       4.0238       3.4949       2.9118       2.2734       1.5882       0.8803       0.0000  
$175.00
    1.9441       1.9403       1.7486       1.5311       1.2863       1.0125       0.7137       0.4026       0.0000  
     The exact stock price and adjustment date may not be set forth on the table, in which case:

 


 

    if the stock price is between two stock price amounts on the table above or the adjustment date is between two adjustment dates on the table, the number of additional shares will be determined by a straight-line interpolation between the number of additional shares set forth for the higher and lower stock price amounts and the earlier and later adjustment dates based on a 365-day year, as applicable;
 
    if the stock price is in excess of $175.00 per share of common stock (subject to adjustment in the same manner as the stock price), no increase in the conversion rate will be made; and
 
    if the stock price is less than $15.43 per share of common stock (subject to adjustment in the same manner as the stock price), no increase in the conversion rate will be made.
     
3.50% Convertible Subordinated Notes due 2017
   
 
Aggregate principal amount offered:  
$200 million
   
 
Over-allotment option:  
$25 million
   
 
Issue price:  
100%
   
 
Underwriting discount:  
2.375%
   
 
Annual interest rate:  
3.50% per year, accruing from December 26, 2007
   
 
Maturity date:  
July 15, 2017
   
 
Interest payment dates:  
January 15 and July 15 of each year, beginning July 15, 2008
   
 
Record dates:  
January 1 and July 1 of each year
   
 
Conversion premium:  
85%
   
 
Initial base conversion price:  
Approximately $28.55 per share of common stock
   
 
Initial base conversion rate:  
35.0318 shares of common stock per $1,000 principal amount of notes (subject to adjustment)
   
 
Incremental share factor:  
29.7770 shares of common stock per $1,000 principal amount of notes (subject to adjustment)
   
 
CUSIP:  
000886 AF8
   
 
ISIN:  
US000886AF85
   
 
Repurchase at the option of the holder upon a fundamental change:  
Upon a fundamental change, the holders may require the Issuer to repurchase all or a portion of their notes for cash at a repurchase price equal to 100% of the principal amount of the notes, plus accrued and unpaid interest, if any, to, but excluding, the repurchase date.
   
 
Adjustment to conversion rate upon a make-whole fundamental change:  
Holders who convert their notes in connection with a make-whole fundamental change are entitled to a make-whole premium in the form of an increase in the conversion rate for notes surrendered for conversion in connection with such fundamental change. The following table sets forth the stock price, adjustment date and number of make-whole shares to be added to the conversion rate per $1,000 principal amount of the 2017 notes.

 


 

     
   
The maximum number of additional shares to be added to the conversion rate per $1,000 principal amount of 2017 notes is 29.7770.
Adjustment Date
                                                                                         
    Dec. 26,     July 15,     July 15,     July 15,     July 15,     July 15,     July 15,     July 15,     July 15,     July 15,     July 15,  
Stock Price   2007     2008     2009     2010     2011     2012     2013     2014     2015     2016     2017  
$15.43
    29.7770       29.7770       29.7770       29.7770       29.7770       29.7770       29.7770       29.7770       29.7770       29.7770       29.7770  
$16.00
    29.2885       29.5244       28.1911       27.4682       27.4682       27.4682       27.4682       27.4682       27.4682       27.4682       28.3000  
$18.00
    27.7488       27.8440       26.3705       24.8579       23.3419       21.8649       20.5238       20.5238       20.5238       20.5238       21.2631  
$20.00
    26.7661       26.7687       25.2314       23.6074       21.9163       20.1770       18.4280       16.7448       15.2468       14.9682       15.6336  
$22.00
    26.1397       26.0814       24.5289       22.8586       21.0776       19.1874       17.2014       15.1445       13.0542       10.9958       11.0277  
$24.00
    25.7462       25.6483       24.1116       22.4373       20.6243       18.6616       16.5449       14.2613       11.7828       9.0009       7.1898  
$26.00
    25.5074       25.3844       23.8825       22.2317       20.4252       18.4441       16.2727       13.8732       11.1755       7.9545       3.9895  
$28.00
    25.3727       25.2343       23.7787       22.1685       20.3936       18.4305       16.2570       13.8216       11.0338       7.6226       1.9074  
$30.00
    23.8881       23.7223       22.3191       20.7597       19.0322       17.1108       14.9706       12.5544       9.7681       6.3537       0.0000  
$32.00
    22.0995       21.9309       20.5830       19.0801       17.4093       15.5443       13.4602       11.0992       8.3755       5.0793       0.0000  
$34.00
    20.5515       20.3834       19.0916       17.6477       16.0385       14.2386       12.2241       9.9408       7.3164       4.2054       0.0000  
$36.00
    19.1990       19.0336       17.7972       16.4126       14.8672       13.1365       11.1991       9.0057       6.5006       3.6017       0.0000  
$38.00
    18.0070       17.8459       16.6634       15.3373       13.8555       12.1954       10.3382       8.2404       5.8625       3.1773       0.0000  
$40.00
    16.9485       16.7927       15.6620       14.3926       12.9734       11.3833       9.6064       7.6052       5.3548       2.8705       0.0000  
$45.00
    14.7567       14.6160       13.6043       12.4665       11.1937       9.7692       8.1833       6.4114       4.4554       2.3857       0.0000  
$50.00
    13.0423       12.9173       12.0090       10.9866       9.8429       8.5649       7.1476       5.5751       3.8627       2.0896       0.0000  
$55.00
    11.6630       11.5529       10.7338       9.8112       8.7794       7.6280       6.3551       4.9500       3.4326       1.8735       0.0000  
$60.00
    10.5282       10.4315       9.6894       8.8529       7.9175       6.8748       5.7244       4.4588       3.0980       1.7006       0.0000  
$65.00
    9.5774       9.4927       8.8172       8.0552       7.2029       6.2533       5.2072       4.0583       2.8251       1.5562       0.0000  
$70.00
    8.7685       8.6946       8.0769       7.3796       6.5993       5.7302       4.7732       3.7230       2.5957       1.4329       0.0000  
$75.00
    8.0716       8.0072       7.4402       6.7993       6.0819       5.2825       4.4024       3.4364       2.3989       1.3262       0.0000  
$80.00
    7.4648       7.4088       6.8863       6.2951       5.6327       4.8943       4.0811       3.1880       2.2276       1.2329       0.0000  
$85.00
    6.9315       6.8829       6.3998       5.8525       5.2387       4.5540       3.7994       2.9699       2.0769       1.1506       0.0000  
$90.00
    6.4589       6.4170       5.9689       5.4606       4.8901       4.2529       3.5501       2.7768       1.9431       1.0774       0.0000  
$95.00
    6.0373       6.0013       5.5846       5.1112       4.5792       3.9845       3.3278       2.6043       1.8234       1.0120       0.0000  
$175.00
    2.6145       2.6238       2.4584       2.2663       2.0457       1.7938       1.5098       1.1903       0.8400       0.4733       0.0000  
     The exact stock price and adjustment date may not be set forth on the table, in which case:
    if the stock price is between two stock price amounts on the table above or the adjustment date is between two adjustment dates on the table, the number of additional shares will be determined by a straight-line interpolation between the number of additional shares set forth for the higher and lower stock price amounts and the earlier and later adjustment dates based on a 365-day year, as applicable;
 
    if the stock price is in excess of $175.00 per share of common stock (subject to adjustment in the same manner as the stock price), no increase in the conversion rate will be made; and
 
    if the stock price is less than $15.43 per share of common stock (subject to adjustment in the same manner as the stock price), no increase in the conversion rate will be made.
     
Other Offering Information  
 
   
 
Trade date:  
December 20, 2007
   
 
Settlement date:  
December 26, 2007
   
 
Joint book-running managers:  
Credit Suisse Securities (USA) LLC,
Morgan Stanley & Co. Incorporated
   
 

 


 

     
Co-managers:  
J.P. Morgan Securities Inc.,
Bear, Stearns & Co, Inc.
   
 
Net proceeds:  
The Issuer estimates that the net proceeds from the sale of the notes, after deducting underwriting discounts and estimated offering expenses, will be approximately $390 million (or approximately $439 million assuming exercise of the underwriters’ over-allotment option in full).
The Issuer has filed a registration statement (including a prospectus) with the SEC for the offering to which this communication relates. Before you invest, you should read the prospectus in that registration statement and other documents the Issuer has filed with the SEC for more complete information about the Issuer and this offering. You may get these documents for free by visiting EDGAR on the SEC web site at www.sec.gov. Alternatively, the Issuer, any underwriter or any dealer participating in the offering will arrange to send you the prospectus if you request it by calling Credit Suisse Securities (USA) LLC toll-free at 1-800-221-1037 or Morgan Stanley & Co. Incorporated toll-free at 1-866-718-1649.
ANY DISCLAIMERS OR OTHER NOTICES THAT MAY APPEAR BELOW ARE NOT APPLICABLE TO THIS COMMUNICATION AND SHOULD BE DISREGARDED. SUCH DISCLAIMERS OR OTHER NOTICES WERE AUTOMATICALLY GENERATED AS A RESULT OF THIS COMMUNICATION BEING SENT VIA BLOOMBERG OR ANOTHER EMAIL SYSTEM.