Micro Component extends interest payments on senior notes

By Sheri Kasprzak

Atlanta, Feb. 25 - Micro Component Technology Inc. said it has extended the interest payments on $2.9 million in senior subordinated convertible notes through 2006.

The company may now pay, in stock, the interest payments until Dec. 24, 2006, the maturity of the notes.

In exchange for this extension, Micro Component dropped the conversion price on the 10% notes to $0.85 each from $1 each and the company must now use its best efforts to register the underlying shares.

The interest payments on the notes had originally been due in four semiannual payments beginning June 30, 2003 and ending Dec. 31, 2004. However, on June 30, 2003, the company restructured $9.29 million of the unconverted notes so that the interest payments could be made in stock instead. At that time, the company reduced the conversion price to $1 from $2.60.

The $10 million offering was first closed Dec. 24, 2001 and since that time $6.4 million of the notes have been converted.

Micro Component, based in St. Paul, Minn., manufactures test-handling products for the semiconductor industry.

On Friday, its stock closed up $0.03 at $0.40.

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