Emcore buys back $11.43 million 5.5% convertibles

By Angela McDaniels

Seattle, April 19 - Emcore Corp. repurchased $11.43 million of its 5.5% senior subordinated convertible notes due 2011 at par plus accrued interest on April 13, according to an 8-K report filed with the Securities and Exchange Commission on Thursday.

Of the notes repurchased, $9.44 million were issued in 2004 and $1.99 million were issued in 2005.

The repurchase was made under an agreement Emcore reached with holders of a majority of the notes on April 9, under which the noteholders gave Emcore the option to buy back 12% of the notes they held and agreed to waive until Feb. 29, 2008 any default related to the company's failure to file its 10-K annual report for the fiscal year ended Sept. 30, 2006 and its 10-Q quarterly report for the quarter ended Dec. 31, 2006.

In return, Emcore agreed to increase the coupon on the notes to 5.5% from 5% and cut the conversion price to $7.01 from $8.09. The company's stock (Nasdaq: EMKR) closed at $5.05 on Thursday.

In January, Emcore received two notices of default on the notes in connection with the filing delay, which the company attributed to a voluntary review of its stock option granting practices and the need to correct its financial statements for previous periods to account for additional stock-based compensation expense.

Emcore is a Somerset, N.J.-based provider of compound semiconductor-based components and subsystems for the broadband, fiber optic, satellite and solar power markets.

© 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.