Pixelworks wraps oversubscribed Dutch auction for 1.75% convertibles

By Jennifer Chiou

New York, March 5 - Pixelworks, Inc. said it accepted for payment $50.25 million principal amount, or 35.9%, of its 1.75% convertible subordinated debentures due 2024 in its modified Dutch auction tender offer that ended on 5 p.m. ET on Feb. 28.

According to the depositary, Mellon Investor Services LLC, $77.73 million principal amount of convertible debentures were tendered, as was reported in a previous news release.

The auction was for up to $50 million of Pixelworks' outstanding 1.75% convertible debentures at a price of $680 to $750 per $1,000 principal amount of notes.

Pixelworks also exercised its right under the terms of the tender offer to accept an additional 2% of the outstanding convertible debentures, or an additional $248,000 total principal amount.

The purchase price of the debentures was $740 per $1,000 principal amount for a total cost of some $37.45 million, including interest.

The maximum total purchase price for the convertible debentures that Pixelworks sought to purchase in the offer was $37.5 million.

Thomas Weisel Partners LLC was the dealer manager for the tender offer, and the information agent was Laurel Hill Advisory Group (800 555-3858).

Pixelworks provides video and pixel processing technology for manufacturers of digital projectors and flat panel display products. The company is located in Tualatin, Ore.

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