New York, Nov. 21 - Richardson Electronics, Ltd. said it sold $25 million of 8% convertible senior subordinated notes in a private placement. The initial conversion premium is 25%.
The notes mature on June 15, 2011.
Their conversion price is $10.31, a 25% premium over the close on Nov. 18.
Proceeds will be used to redeem Richardson's remaining 8¼% convertible subordinated debentures due 2006 and 7¼% convertible subordinated debentures due 2006 and to repay bank debt.
The Lafox, Ill., supplier of electronic equipment can call the notes after Dec. 20, 2008 at par.
| Issuer: | Richardson Electronics, Ltd.
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| Issue: | Convertible senior subordinated notes
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| Amount: | $25 million
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| Maturity: | June 15, 2011
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| Coupon: | 8%
|
| Conversion premium: | 25%
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| Conversion price: | $10.31
|
| Call: | Dec. 20, 2008 onwards at par
|
| Pricing date: | Nov. 18
|
| Stock price: | $8.25 at close Nov. 18
|
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