Photronics note proceeds to pay off debt, acquire 5.5% convertibles

By Toni Weeks

San Diego, March 22 - Photronics, Inc. intends to acquire up to $30 million of its outstanding 5.5% convertible senior notes due 2014 in individually negotiated transactions, with cash and/or shares of its common stock as consideration, and repay up to $23 million of other higher-interest-bearing debt, according to a press release.

The company's planned offering of $100 million of convertible senior notes due 2016 will provide the funds for the transactions.

The company intends to use the remaining net proceeds to acquire additional 5.5% convertibles in the open market from time to time and for general corporate purposes, which may include working capital and capital expenditures, the release said.

Photronics is a Brookfield, Conn.-based manufacturer of photomasks and reticles.

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