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Hutchinson gets tenders for $51.68 million 8.5% convertibles
By Jennifer Chiou
New York, April 12 - Hutchinson Technology Inc. announced that it received tenders for $51,684,000, or 60.7%, of its 8.5% convertible senior notes due 2026 in the tender offer for up to $26,666,000 principal amount.
The tenders will be prorated at 51.6%, according to a news release.
The offer ended at 9 a.m. ET on April 12.
Under the offer, the company will make cash payments totaling $19,999,500, plus accrued interest, for the purchase of $26,666,000.
A total of $58,504,000 of the notes will remain outstanding.
In an offer that expired at 9 a.m. ET on March 28, the company obtained tenders for $64,357,125 principal amount, or 84%, of its 3.25% convertible subordinated notes due 2026. Of the tendered notes, $43.26 million was tendered for exchange and $21,097,125 was tendered for purchase.
The company offered $900 principal amount of new 8.5% senior secured second-lien notes due Jan. 15, 2017 in exchange for each $1,000 principal amount of 3.25% convertibles. It also offered to purchase up to $49.25 million of the 3.25% convertibles at 80% of par.
As noted, the offers are being funded with the proceeds from $40 million of the new 8.5% second-lien notes sold in a private placement to Silver Lake Credit Fund LP and investment funds managed by Goldman Sachs Asset Management LP.
The dealer manager for the exchange and tender offers was Houlihan Lokey (212 497-7864). The exchange agent and information agent was D.F. King & Co. (banks and brokers call 212 269-5550; others call 800 758-5880).
Hutchinson Technology is a Hutchinson, Minn.-based designer and manufacturer of precision technologies.
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