Arris continues repurchasing convertibles, now $24 million outstanding

New York, Jan. 8 - Arris Group, Inc. said it has now repurchased $91 million of its 4½% convertible subordinated notes due May 15, 2003 out of the $115 million originally issued.

The Duluth, Ga. broadband network and data and telephony systems company also said during a presentation to the Needham growth conference in New York that it expects to end 2002 with $100 million of cash on hand and no outstanding borrowings on its revolving credit facility.

As previously disclosed, Arris has obtained a waiver from its bank lenders allowing it to repurchase all the remaining convertibles before maturity as long as it maintains a certain minimum cash balance.

On Dec. 18 it said it had $36 million of the convertibles remaining, on Nov. 14 it said it had $48.1 million.

Robbins & Myers starts exchange for 6.5% convertibles

New York, Jan. 8 - Robbins & Myers, Inc. started an exchange offer for $40 million of its outstanding 6.5% convertible subordinated notes due 2003.

The Dayton, Ohio highly engineered equipment company is offering an equal principal amount of new convertibles with a higher coupon, longer maturity and lower conversion price.

Investors who participate in the exchange will receive 8% convertible subordinated notes due Jan. 31, 2008 with a conversion price of $22.50 per share. The new notes will be callable at 102 on March 1, 2004 and at par from March 1, 2005 onwards.

Robbins & Myers existing convertibles convert at $27.25 per share. The stock closed at $17.90 on Wednesday.

The offer is subject to at least $20 million of notes being tendered. There is currently $59.691 million principal amount of the old notes outstanding.

Expiry for the exchange is midnight ET on Feb. 7 unless extended.

"Our growth strategy includes higher sales from our current businesses as well as from acquisitions. We believe maintaining $40.0 million of our capital structure as convertible subordinated notes provides the financial flexibility to support this strategy. It is our expectation that the new notes will be converted into equity during their term," said Gerald L. Connelly, the company's president and chief executive officer, in a press release announcing the exchange.

The existing notes trade on the New York Stock Exchange under the symbol RBN#03 and the company said it expects to list the new notes.

The information agent for the exchange is Georgeson Shareholder (banks and brokers call 212 440-9800, others call 866 203-1198) and the exchange agent is U.S. Bank NA.

For details see:

http://www.sec.gov/Archives/edgar/data/84290/000095015203000227/l98114aexv99waw1.htm

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