Powerchip gets tenders for 83.7% of 0% bonds in conversion offer

By Jennifer Chiou

New York, Feb. 1 - Powerchip Semiconductor Corp. said that holders of 83.7% of its $133,467,000 of zero-coupon convertible bonds due Feb. 2, 2010 participated in the company's offer to convert their securities.

Powerchip was seeking conversion notices from holders of at least 90% of the bonds, but it previously said that it may proceed with the conversion even though that threshold was not met.

The company added that it will notify holders of any further updates on its invitation to convert.

The prevailing conversion price was NT$15.87 per share.

In return, the company said it offered a cash consideration for bonds converted by 10 a.m. ET on Jan. 28.

For each $1,000 principal amount, the conversion payment was NT$4.14, which was the difference between $1,000 and the market value of the conversion shares determined using the average closing share price of the common shares over a period from Jan. 22 to Jan. 28.

The company said that settlement will occur no later than Feb. 9.

The offer was first announced on Jan. 15.

The Bank of New York Mellon was the conversion agent.

Hsinchu, Taiwan-based Powerchip makes memory products.

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