Powerchip hits minimum participation threshold in offer to convert

By Angela McDaniels

Tacoma, Wash., June 22 - Powerchip Semiconductor Corp. has attained the necessary threshold to complete the invitation to convert it made to the holders of its $157.85 million outstanding principal amount of zero-coupon convertible bonds due June 17, 2009, according to a company news release.

Bondholders who have not yet submitted conversion notices may do so until 10 a.m. ET on June 25.

The conversion price is being temporarily reset downward so that holders who convert under the invitation will receive common shares with a market value of $600 per $1,000 principal amount of bonds converted.

Bondholders will also receive $400 in cash per $1,000 principal amount of bonds converted.

The company had received conversion notices for 89% of the bonds as of June 17.

The invitation to convert began June 11.

The company needs bank lender approval of the cash payment and shareholder approval for the conversion price reset.

Hsinchu, Taiwan-based Powerchip makes memory products.

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