Violin Memory’s 4.25% convertibles to be putable after stock delisted

New York, Nov. 28 – Violin Memory, Inc. said that its common stock has been delisted from the New York Stock Exchange and that its 4.25% convertible senior notes due 2019 become putable on a delisting.

The repurchase date for the notes has not yet been fixed nor has the company notified noteholders of their right to require that their notes be repurchased, according to an 8-K filing with the Securities and Exchange Commission.

Violin’s stock was delisted by the NYSE on Nov. 18 because the company had not maintained an average market capitalization of at least $15 million over a 30 trading day period.

The stock is now trading on the OTCQX market under the symbol “VMEM,” the filing said.

Under the terms of the convertibles, a “fundamental change” occurs if the stock is no longer listed on the NYSE, the Nasdaq Global Market or the Nasdaq Global Select Market.

Violin is required to notify noteholders by Dec. 3, the date that is 15 calendar days from the fundamental change, that they have the right to require Violin to repurchase the notes at par plus accrued interest.

The repurchase date must be at least 20 business days and no more than 35 business days following the date of the notice of fundamental change.

Violin Memory is a Santa Clara, Calif., maker of computer data storage products.

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