LTX-Credence wraps offer of cash, convertibles for 3.5% convertibles

By Jennifer Chiou

New York, May 21 - LTX-Credence Corp. said it received tenders for $31,784,000 of its 3.5% convertible senior subordinated notes due May 15, 2010 in the exchange offer for the notes.

The tendered amount represents more than 95% of the notes.

For each $1,000 principal amount of old convertibles exchanged, LTX-Credence will issue $750 principal amount of 3.5% convertible senior subordinated notes due May 15, 2011, $199.6875 in cash and accrued interest up to but excluding the settlement date of May 26.

The company said the terms of the new convertibles will be substantially the same as the terms of the old convertibles except for the maturity date and the requirement that LTX-Credence pay a premium of 7.5% at maturity in addition to principal and interest.

At April 21, the principal amount of old convertibles outstanding was $33.3 million.

LTX-Credence said Tradewinds Global Investors, LLC, an investment adviser to clients that beneficially own 93.7% of the convertibles outstanding as of April 17, previously agreed to instruct and use reasonable efforts to cause all of its clients to participate in the offer.

The exchange offer expired at 5 p.m. ET on May 20. It began on April 22.

Bank of New York Mellon Trust Co., NA (212 815-3738) was the exchange agent.

Formed by the 2008 merger of LTX Corp. and Credence Systems Corp., LTX-Credence is a Milpitas, Calif.-based maker of automated test equipment solutions for the wireless, computing, automotive and entertainment markets.

The convertibles were issued by Credence Systems in December 2006.

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