Arris debt free with redemption of 4.5% convertibles

By Jennifer Chiou

New York, June 29 - Arris issued 15 million of its common shares to complete the redemption of all remaining $75 million of 4.5% convertible subordinated notes due 2008.

All holders elected to convert their notes into Arris common stock before the close of business on June 28 at a rate of 200 shares per $1,000 principal amount or $5.00 per share.

The company also will make a $2.4 million interest make-whole payment to noteholders.

The redemption of the notes, issued March 18, 2003, will cut related interest expenses of about $1 million per quarter.

"We are extremely proud of our financial accomplishments and strong market performance over the past several years," said David Potts, executive vice president and chief financial officer, in a news release.

"With the completion today of the redemption of our outstanding notes, Arris becomes completely debt free and, coupled with our current cash position and new product offerings, is very well positioned for the future."

The Suwanee, Ga.-based telecommunications company provides broadband local access networks and now has 103.5 million shares outstanding.

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