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Silicon Graphics pulls exchange offer
New York, Aug. 4 - Silicon Graphics, Inc. said it has terminated its exchange offer for its 5¼% senior convertible notes due Sept. 1, 2004.
The Mountain View, Calif. company said that only 71% of the $230 million of convertibles had been tendered by the expiration date of midnight ET on Aug. 1 compared with the 85% required to complete the transaction.
Silicon Graphics had previously said it would not extend the exchange further if the minimum was not reached.
"We are encouraged that the holders of a significant majority of the notes agreed with our plan," said Robert Bishop, Silicon Graphic's chief executive officer, in a news release. "We will to continue to work with the holders to restructure this obligation."
The abandonment of the offer follows a modification in July in which the company cut the minimum amount required to 85% from 90%.
Silicon Graphics was offering to exchange either new 6½% senior convertible notes due 2009 or new 11¾% senior notes due 2009 for the existing 5¼% convertibles, at the option of the tendering noteholder. The new convertibles would have converted at $1.85 per share and Silicon Graphics would have issued up to $78 million of them.
The offer reflected revised terms following discussions with noteholders.
XL to pay upcoming LYONS put in cash
New York, Aug. 4 - XL Capital Ltd. said it will pay the upcoming put on its Liquid Yield Option Notes due 2021 in cash.
The Hamilton, Bermuda insurance and reinsurance company said that if all the LYONs are tendered it will have to pay $305.895 million.
The LYONs are putable on Sept. 8 at $601.16 per $1,000 principal amount at maturity.
Cephalon buys back $12 million 3 7/8% convertibles
New York, Aug. 4 - Cephalon, Inc. said it bought back $12 million of its 3 7/8% convertibles during July.
The repurchases were in addition to the West Chester, Pa. biopharmaceutical company's redemption of $174 million of its 5¼% convertibles.
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