Option Exercised to Purchase Additional Gateway Senior Convertible Notes
December 31 2004 - 2:00PM
PR Newswire (US)
Option Exercised to Purchase Additional Gateway Senior Convertible
Notes IRVINE, Calif., Dec. 31 /PRNewswire-FirstCall/ -- Gateway,
Inc. (NYSE:GTW) today announced that the initial purchasers of its
1.5 percent Senior Convertible Notes due 2009 and 2 percent Senior
Convertible Notes due 2011 have exercised their option to purchase
an additional $12.5 million aggregate principal amount of notes of
each series. The closing in respect of the additional notes was
completed on Dec. 31, 2004. (Logo:
http://www.newscom.com/cgi-bin/prnh/20020930/LAM050LOGO ) The notes
will be convertible into shares of Gateway common stock at an
initial conversion rate of 115.8749 shares per $1,000 principal
amount of notes (which is equivalent to a conversion price of
approximately $8.63 per share). Upon the occurrence of certain
designated events, holders will have the right to require Gateway
to repurchase the notes at a price equal to 100 percent of their
principal amount. Should certain transactions that constitute a
fundamental change in Gateway occur, under certain circumstances
the conversion rate for the notes will be increased. The notes will
be offered only to qualified institutional buyers and other
eligible purchasers in a Rule 144A private placement offering. The
notes will not be registered under the Securities Act of 1933 and
may not be offered or sold in the United States absent registration
or an applicable exemption from registration requirements. Special
note This press release contains forward-looking statements that
involve risks and uncertainties, as well as assumptions that, if
they do not materialize or prove incorrect, could cause Gateway's
results to differ materially from those expressed or implied by
such forward-looking statements. All statements, other than
statements of historical fact, are statements that could be
forward-looking statements, including any projections or
preliminary estimates of earnings, revenues, or other financial
items; any statements of plans, strategies and objectives of
management for future operations; any statements regarding proposed
new products, services or developments; any statements regarding
future economic conditions or performance; statements of belief and
any statement of assumptions underlying any of the foregoing. The
risks that contribute to the uncertain nature of these statements
include, among others, risks related to shifting our distribution
model to third-party retail; competitive factors and pricing
pressures, including the impact of aggressive pricing cuts by
larger competitors; general conditions in the personal computing
industry, including changes in overall demand and average selling
prices, shifts from desktops to mobile computing products and
information appliances and the impact of new microprocessors and
operating software; the ability to simplify the company's business,
change its distribution model and restructure its operations and
cost structure; component supply shortages; the effects of seasonal
changes in demand; short product cycles; the ability to access new
technology; infrastructure requirements; risks of international
business; foreign currency fluctuations; risks relating to new or
acquired businesses, joint ventures and strategic alliances; risks
related to financing customer orders; changes in accounting rules;
the impact of litigation and government regulation generally;
inventory risks due to shifts in market demand; the impact of
employee reductions and management changes and additions; and
general economic conditions, and other risks described from time to
time in Gateway's Securities and Exchange Commission periodic
reports and filings. Gateway assumes no obligation to update any
forward-looking statements to reflect events that occur or
circumstances that exist after the date on which they were made.
http://www.newscom.com/cgi-bin/prnh/20020930/LAM050LOGO
http://photoarchive.ap.org/ DATASOURCE: Gateway, Inc. CONTACT:
media, David Hallisey, +1-858-248-0242, or , or investors, Marlys
Johnson, +1-605-232-2709, or , both of Gateway, Inc. Web site:
http://www.gateway.com/
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