Verigy buyout triggers conversion clause under 5.25% notes due 2014

By Susanna Moon

Chicago, July 5 - Verigy Ltd. holders may convert their 5.25% senior convertible notes due 2014 because a change of control occurred when the company was acquired by Advantest Corp., according to an 8-K filed Wednesday with the Securities and Exchange Commission.

The close of the acquisition on July 4 for $15.00 per share constitutes a make-whole fundamental change under the note terms. The total purchase price was $1.1 billion, including about $175 million paid by Verigy as the settlement amount for the convertibles.

The fundamental change purchase date will be between July 25 and Aug. 26.

Based in Singapore, Verigy is a semiconductor test company with operations in California.

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