By Angela McDaniels
Tacoma, Wash., March 11 - Powerwave Technologies, Inc. will issue $60 million principal amount of new 1.875% convertible senior subordinated notes due 2024 in exchange for an equal amount of its outstanding 1.875% convertible subordinated notes due 2024, according to an 8-K filing with the Securities and Exchange Commission.
The new convertibles extend the first put date to Nov. 15, 2013 from Nov. 15, 2011. They are also putable on Nov. 15, 2014 and Nov. 15, 2019.
The conversion price of the new convertibles is $1.70.
The new convertibles are callable beginning Nov. 21, 2012, and Powerwave can force conversion if its stock price is more than 125% of the conversion price for 20 out of any 30-trading-day period. If the convertibles are mandatorily converted on or prior to Nov. 15, 2011, holders will receive a make-whole payment in cash.
Settlement is expected to occur Monday. Following the exchange transactions, approximately $71 million of the existing convertibles will remain outstanding.
The swap is being made under privately negotiated exchange agreements reached on Thursday.
Powerwave is a Santa Ana, Calif.-based supplier of end-to-end wireless solutions for wireless communications networks.
| Issuer: | Powerwave Technologies Inc.
|
| Issue: | Convertible senior subordinated notes
|
| Amount: | $60 million
|
| Maturity: | Nov. 15, 2024
|
| Coupon: | 1.875%
|
| Price: | Par
|
| Yield: | 1.875%
|
| Conversion price: | $1.70
|
| Conversion ratio: | 588.235
|
| Call option: | From Nov. 21, 2012 onward
|
| Mandatory conversion: | At company's option if stock closes above 125% of conversion price for 20 out of 30 trading days
|
| Put option: | On Nov. 15, 2013, Nov. 15, 2014 and Nov. 15, 2019
|
| Pricing date: | March 11
|
| Settlement date: | March 15
|
| Stock symbol: | Nasdaq: PWAV
|
| Stock price: | $1.35 on March 11
|
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