Powerchip Semiconductor says more convertible holders agree to convert

By Angela McDaniels

Tacoma, Wash., Feb. 4 - Powerchip Semiconductor Corp. said that additional holders agreed to convert their zero-coupon convertible bonds due Feb. 2, 2010, bringing the total percentage of bonds to be converted to 87.58%.

To induce conversion, the company offered a cash payment of approximately $740 for each $1,000 principal amount of bonds converted.

On Feb. 1, the company said holders of 83.7% of the $133,467,000 principal amount of convertibles had agreed to convert.

The cash payment is the difference between $1,000 and the market value of the shares issuable upon conversion determined using Powerchip's average closing share price over a period from Jan. 22 to Jan. 28.

The cash payment was made on Feb. 2, and the shares will be delivered by Feb. 9.

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.

Bank of New York Mellon was the conversion agent.

Hsinchu, Taiwan-based Powerchip makes memory products.

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