Merix Corporation Announces $60 Million Convertible Debt Financing
May 11 2006 - 8:34AM
Business Wire
Merix Corporation (Nasdaq:MERX) today announced that it has agreed
to sell $60 million of 4% Convertible Senior Subordinated Notes due
May 2013 in an offering to qualified institutional investors
pursuant to Rule 144A under the Securities Act of 1933. The sale of
the notes to the initial purchaser is expected to close on May 16,
2006, subject to satisfaction of customary closing conditions.
Merix has also granted the initial purchaser a 13-day option to
purchase an additional $10 million principal amount of the notes.
The notes will be unsecured and subordinate to Merix' senior bank
debt, convertible into shares of Merix' common stock and callable
after May 20, 2010 if certain conditions are met. The initial
conversion rate is 65.8328 shares of common stock per $1,000
principal amount of the notes (which is equivalent to an initial
conversion price of approximately $15.19 per share), subject to
adjustment upon the occurrence of certain events. Merix intends to
use the proceeds from the sale to retire $25 million principal
amount of 6.5% convertible debentures due May 2007 and $30 million
of bank debt incurred in Asia in connection with the acquisition of
Merix' Asian operations. Any remaining proceeds are expected to be
used to further reduce debt or for other corporate purposes. This
announcement is neither an offer to sell nor a solicitation of an
offer to buy any of these securities and shall not constitute an
offer, solicitation or sale in any jurisdiction in which such
offer, solicitation or sale is unlawful. The securities will not be
registered under the Securities Act, or any state securities laws,
and unless so registered, may not be offered or sold in the United
States except pursuant to an exemption from the registration
requirements of the Securities Act and applicable state laws.
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