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Photronics acquires $30.4 million of convertibles with cash, stock
By Toni Weeks
San Diego, March 30 - Photronics, Inc. said it acquired $30.4 million of its outstanding 5.5% convertible senior notes due October 2014 in individually negotiated transactions, according to a press release.
The company used $19.7 million of cash and about 4.5 million shares of its common stock with an approximate value of $39.2 million to fund the transactions.
The company expects to record an after-tax charge of $30 million to $31 million, of which 67% is expected to be non-cash. As a result of the after-tax charge and the issuance of common stock, Photronics' equity will increase by $9 million.
Photronics may repurchase additional debt from time to time at prices it considers attractive. The timing and amount of these repurchases, if they occur, will depend on availability of capital, prevailing market prices of the company's debt and overall market conditions.
Photronics is a Brookfield, Conn.-based manufacturer of photomasks and reticles.
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