Network Equipment Technologies, Inc. to Offer $85 Million of Convertible Senior Notes
December 11 2007 - 4:06PM
Marketwired
FREMONT, CA today announced its intention to offer, subject to
market and other conditions, $85 million aggregate principal amount
of Convertible Senior Notes in a private offering to qualified
institutional buyers pursuant to Rule 144A under the Securities Act
of 1933, as amended. The notes will be convertible into shares of
the company's common stock and will mature in 2014. The interest
rate, conversion price and other terms of the notes will be
determined by negotiations between the company and the initial
purchaser of the notes. The company expects to grant to the initial
purchaser an option to purchase up to $20 million aggregate
principal amount of additional notes on or prior to December 28,
2007.
The company expects to use the net proceeds for working capital
and general corporate purposes, which may include capital
expenditures and potential acquisitions.
This press release is neither an offer to sell or a solicitation
of an offer to buy the notes nor shall there be any sale of the
notes in any state or jurisdiction in which such an offer,
solicitation or sale would be unlawful prior to the registration or
qualification thereof under the securities laws of any such state
or jurisdiction. Any offers of the notes will be made only by means
of a private offering memorandum. The notes and the company's
common stock issuable upon the conversion of the notes have not
been registered under the Securities Act or the securities laws of
any other jurisdiction and may not be offered or sold in the United
States absent registration or an applicable exemption from
registration requirements.
This press release contains forward-looking statements within
the meaning of the U.S. Private Securities Litigation Reform Act of
1995. Forward-looking statements are based on management's current
preliminary expectations and are subject to risks, uncertainties
and assumptions, including the risk that the company may be unable
to complete the offering. Other information on potential risk
factors that could affect the company, its business and its
financial results are detailed in the company's periodic filings
with the Securities and Exchange Commission (SEC), including, but
not limited to, those risks and uncertainties listed in the section
entitled "Risk Factors," which can be found in the company's annual
report on Form 10-K for the fiscal year ended March 30, 2007 filed
with the SEC on May 25, 2007.
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