VeriFone pays additional interest on 1.375% convertibles

By Angela McDaniels

Tacoma, Wash., Sept. 9 - VeriFone Holdings Inc. said its 1.375% senior convertible notes due 2012 are accruing additional interest at a rate of 2% per year.

The notes are accruing the additional interest because the company did not increase its authorized capital to allow conversion of all the notes at the initial conversion rate by June 21, according to an S-1 report filed with the Securities and Exchange Commission on Tuesday.

The amount of additional interest will increase by 0.25% per year.

If stockholders approve an increase in the company's authorized capital, the additional interest will cease to accrue. VeriFone gave no assurance that stockholder approval will be obtained.

The San Jose, Calif.-based provider of electronic payment systems issued $275 million of the notes in June 2007.

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