Evans & Sutherland to redeem convertible debentures

By Jennifer Chiou

New York, Feb. 8 - Evans & Sutherland Computer Corp. announced it intends to retire its convertible subordinated debentures using the proceeds from the $71.5 million sale of its simulation business to Rockwell Collins, Inc.

Remaining proceeds will go towards reducing obligations under the company's pension and retirement plans as well as for working capital.

Evans & Sutherland said it may also consider using some proceeds for a share buyback or special dividend.

The company's shareholders must approve the transaction, which is expected to close in the second quarter.

The company also said it will acquire planetarium system supplier Spitz, Inc. for $3.4 million.

Salt Lake City, Utah-based Evans & Sutherland produces professional hardware and software to create visual images for military, commercial and other applications.

Rockwell Collins, a designer and producer of communication and aviation electronics, has headquarters in Cedar Rapids, Iowa.

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