Extreme Networks to accept up to 26% of its outstanding common stock in tender offer

By Lisa Kerner

Charlotte, N.C., Aug. 11 - Extreme Networks, Inc. said it will begin a modified Dutch auction tender offer on Monday to purchase $100 million worth of its common stock at a price per share that is not less than $3.30 and not greater than $3.70.

The offer, to be funded with available cash on hand, is slated to end at 5 p.m. ET on Sept. 12, unless extended, the company said.

Aug. 7 is the record date for the offer.

At the minimum price of $3.30 per share, Extreme Networks would purchase a maximum of 30,303,030 shares, while at the maximum price of $3.70 per share, Extreme Networks would purchase a maximum of 27,027,027 shares.

According to Extreme Networks, the maximum number of shares proposed to be purchased in the stock tender offer represents about 26% of the company's outstanding common stock.

"The board believes that this offer is an opportunity to increase the long-term value of our stock for our stockholders, while at the same time providing stockholders who wish to tender some or all of their shares a way to do so efficiently," Extreme Networks chairman Gordon Stitt noted in a news release.

Goldman, Sachs & Co. will serve as dealer manager for the stock tender offer. MacKenzie Partners, Inc. will serve as information agent, and Mellon Investor Services LLC will serve as the depositary.

Based in Santa Clara, Calif., Extreme Networks provides network infrastructure equipment for corporate, government, education and health care enterprises, and metropolitan telecommunications service providers.

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