Newport buys back $69.6 million of its 2.5% convertibles due 2012

By Tali David

Minneapolis, Dec. 7 - Newport Corp. announced that it has retired $69.6 million of its 2.5% convertible subordinated notes due Feb. 15, 2012, for a payment of $70 million plus accrued interest, according to a press release.

Following the transaction, $51 million of the convertibles remain.

"We are pleased that we were able to retire a substantial portion of our convertible notes prior to their February 2012 maturity date," Newport's senior vice president and chief financial officer Charles Cargile said in the release.

"The net savings on interest expense is compelling and we reduced our total outstanding debt. We remain very confident in our ability to generate significant cash from operating activities and to capitalize on opportunities to effectively utilize our cash," Cargile added.

Newport is based in Irvine, Calif., and makes advanced technology products and systems for use in the scientific research, aerospace, defense/security, microelectronics, life and health sciences and precision industrial manufacturing markets.

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