Hutchinson Technology buys back $18.68 million 8.5% convertibles

By Jennifer Chiou

New York, Jan. 23 - Hutchinson Technology Inc. announced the repurchase of $18,682,000 aggregate principal amount of its 8.5% convertible senior notes due 2026.

The company paid $11,582,840, plus accrued interest, using the $11.59 million of proceeds from a $12.2 million private placement of 10 7/8% senior secured second-lien notes due Jan. 15, 2017.

This leaves $39,822,000 of the 8.5% notes outstanding.

The refinancing improves the company's financial position by extending the maturity of a portion of its debt and reducing its overall debt balance by $6,482,000, while maintaining its cash levels, according to chief financial officer David Radloff.

The company said in a news release that amendments to its existing senior secured credit facility became effective, allowing for the issue of the 10 7/8% notes.

Hutchinson Technology is a Hutchinson, Minn.-based designer and manufacturer of technology products.

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