By Angela McDaniels
Tacoma, Wash., June 26 - RadiSys Corp. agreed to issue $18 million principal amount of new 4.5% convertible senior notes due Feb. 15, 2015 in exchange for an equal amount of its outstanding 2.75% convertible senior notes due Feb. 15, 2013, according to an 8-K filing with the Securities and Exchange Commission.
The exchange will be made under subscription agreements reached with some holders of the 2.75% convertibles on June 20. The company said it plans to settle the exchange as soon as possible.
The initial conversion rate is 117.2333 shares per $1,000 principal amount of new convertibles, which is equivalent to a conversion price of $8.53 per share. This is a 32% premium over the $6.46 closing price of the company's stock on June 19.
Holders will have a put option at par if a fundamental change occurs. In addition, if certain fundamental changes occur, the company may be required to increase the conversion rate.
The company issued $55 million of the 2.75% convertibles in February 2008. Their conversion price is $13.03. As of March 31, $45 million of the convertibles remained outstanding.
RadiSys is a Hillsboro, Ore.-based maker of embedded wireless infrastructure products for telecom, aerospace, defense and public safety applications.
| Issuer: | RadiSys Corp.
|
| Issue: | Convertible senior notes
|
| Amount: | $18 million
|
| Maturity: | Feb. 15, 2015
|
| Coupon: | 4.5%
|
| Conversion premium: | 32%
|
| Conversion price: | $8.53
|
| Conversion ratio: | 117.2333
|
| Put option: | At par if a fundamental change happens
|
| Pricing date: | June 20
|
| Stock symbol: | Nasdaq: RSYS
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| Stock price: | $6.35 at close June 26
|
| Market capitalization: | $178.13 million
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