ASM retires $48 million of 5.25% convertibles at discount

By Susanna Moon

Chicago, Dec. 12 - ASM International NV said it completed repurchasing $48 million principal amount of its 5.25% convertible subordinated notes due 2010 for about $38 million.

The buyback was funded by the remaining €13 million of the 2008 cash dividend received from its subsidiary ASM Pacific Technology, Ltd. and expected future cash dividends, according to a press release.

By spending €30 million, or $38 million, to retire $48 million of the notes, the company said it lowered its front-end net debt position by €8 million, decreased interest charges and reduced potential share dilution related to conversion of the notes.

The buyback decreased the total amount of 2010 debentures outstanding to $21 million from $69 million at the end of September.

Because the notes were bought at a discount to the nominal amount, the current buyback will incur a one-time gain of €8 million to the fourth-quarter income statement.

ASM is a Netherlands-based semiconductor circuitry maker.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.