Aether Systems says $38 million convertibles tendered, will pay high end of range

New York, Nov. 14 - Aether Systems, Inc. said $38 million principal amount of its 6% convertible subordinated notes due 2005 were tendered in its recent offer to buy back the securities.

The Owing Mills, Md. wireless data company added that it will pay $750 per $1,000 to buy back the convertibles, the top end of the $700 to $750 range set for the dutch auction used to fix the purchase price.

Aether Systems had offered to buy back up to $100 million of the convertibles. Before the tender started the company had $207.3 million of the convertibles outstanding.

The offer expired on Nov. 12. Aether will pay accrued interest through Nov. 14. The results of the tender are preliminary, the company added.

"We wanted to support our stakeholders by providing this liquidity opportunity and we are encouraged by the results," said chairman and chief executive officer Dave Oros in a news release. "While the offer to repurchase was higher, these results represent a vote of confidence in terms of how the company is positioned for the long term. We will continue to move forward on our strategic plan."

Credit Suisse First Boston Corp. acted as dealer manager and D.F. King & Co., Inc. acted as information agent for the offer.

© 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.