Stratus Technologies begins excess cash offer for units of 12% notes

By Susanna Moon

Chicago, May 31 - Stratus Technologies Bermuda Holdings Ltd. began an excess cash offer for 12% senior secured notes due 2015 issued by its subsidiaries, according to a press release.

The company will pay 120% of par to purchase up to 5,000 outstanding units consisting of $480 principal amount of 12% notes issued by Stratus Technologies Bermuda Ltd., a wholly owned direct subsidiary, and $520 principal amount of 12% notes issued by Stratus Technologies, Inc., a wholly owned indirect subsidiary.

Stratus also will pay accrued interest to the settlement date.

The offer will expire at 11:59 p.m. ET on June 27.

Under the terms of the units and notes, the issuers are required to make an offer to purchase notes as units using all of the company's excess cash flow for the fiscal year ended Feb. 27. But if the company's excess cash flow for that year is less than $5 million, the offer amount will be $5 million.

The offer is subject to proration if it is oversubscribed.

Stratus is a Maynard, Mass.-based information technology company.

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