Ramtron retires convertible debentures for $4.9 million

By Sheri Kasprzak

New York, July 7 - Ramtron International Corp. said it has repaid all its outstanding convertible debentures for $4.9 million, including principal, future interest and a prepayment penalty.

The company first issued the $8 million in 5% debentures to Infineon, Halifax Fund LP on March 14, 2002. The other holders of the debentures included Bramwell Capital Corp. and Alexandra Global Master Fund, Ltd. The debentures had been due on March 14, 2007.

Ramtron said it anticipates a pretax charge of about $1.6 million for the third quarter of 2005. Of that, $1.2 million will be non-cash to account for the costs associated with the debt repayment.

The warrants, for 779,000 shares exercisable at $3.04 each, will remain in effect. The warrants expire in 2007.

"We believe that the early retirement of these debentures is in the best interest of our shareholders," said Eric Balzer, the company's chief financial officer, in a statement. "The removal of the covenants associated with the debentures combined with the more flexible terms of a new line of credit increases our latitude to make operational decisions with long-term impact and pursue new growth opportunities for our semiconductor business."

Along with the repayment of the debentures, Ramtron drew $3.6 million from its recently acquired $4 million credit line.

Based in Colorado Springs, Colo., Ramtron develops nonvolatile ferroelectric random access memory products for semiconductors.

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