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Safeguard to use proceeds from CompuCon sale to retire convertibles, fund interest payments
Pittsburgh, May 28 - Safeguard Scientifics Inc. will use a portion of $128 million in proceeds from the sale of its interest in CompuCom Systems Inc. to retire its 5% convertible subordinated notes due June 15, 2006 and to fund interest payments on its 2.625% convertible senior debentures due 2024, according to a press release Friday.
Platinum Equity LLC will acquire CompuCon for $4.60 per common share, plus Platinum will acquire Safeguard's holdings of CompuCon preferred shares at par of $15 million plus accumulated dividends. At closing, Safeguard will receive $128 million of cash proceeds for its CompuCon preferreds.
The sale is expected to close late in the third quarter and is contingent on the placement of $35 million in debt financing.
Wayne, Pa.-based Safeguard takes controlling interests in information technology and healthcare life sciences companies.
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