Aether Systems starts dutch auction tender for up to $100 million convertibles

New York, Oct. 15 - Aether Systems, Inc. announced a dutch auction tender offer for up to $100 million of its 6% convertible subordinated notes due 2005.

The Owings Mills, Md. wireless data company said it will accept offers of $700 to $750 per $1,000 principal amount for the securities.

Aether Systems said it currently has $207.3 million of the convertibles outstanding following four previous repurchases. If the new tender offer is successful, the company will have $107.3 million principal amount remaining, with 65% of the original principal amount repurchased.

Available cash will be used for the tender offer.

Under the dutch auction procedure, Aether Systems will accept offers from the lowest to the highest price until it has reached the $100 million total or accepted all offers. The company will pay a single price for all notes purchased in the tender.

The tender expires at midnight ET on Nov. 12 unless extended.

Credit Suisse First Boston Corp. is dealer manager for the offer, D.F. King & Co., Inc. is the information agent and Wachovia is the depositary.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.