Cypress Semiconductor holders put back $28.7 million 1% convertibles

By Jennifer Chiou

New York, Dec. 19 - Cypress Semiconductor Corp. repurchased $28.7 million of its 1% convertible senior notes that were put back to the company on Dec. 17, according to an 8-K filed with the Securities and Exchange Commission.

The San Jose, Calif.-based semiconductor manufacturer said that $27.9 million of the notes remains outstanding.

On Sept. 29, the company completed the distribution of 42 million class B shares of SunPower Corp. to Cypress' stockholders. The spinoff constituted both a fundamental change and a make-whole fundamental change to the convertibles.

Consequently, the remaining holders were permitted to require Cypress to purchase their notes at par plus accrued interest.

Those who did not put back their notes maintain the right to convert their holdings. The conversion rate is 177.2993 shares per $1,000 principal amount, which is equivalent to a conversion price of $5.64 per share. The company's shares closed at $4.07 on Dec. 18.

Also, on Thursday, the company extended the maturity date of its revolving line of credit with Silicon Valley Bank to January. The total available amount under the line of credit is $55.0 million, and no borrowings were outstanding as of Dec. 18.

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