Credence holders to exchange $72.5 million 1.5% notes for 3.5% notes, buy additional $50 million

By Jennifer Chiou

New York, Dec. 15 - Credence Systems Corp. announced it entered into privately negotiated agreements with noteholders to exchange $72.5 million of its 1.5% convertible subordinated notes due 2008.

As a result, the company will issue an equal amount of new 3.5% convertible senior subordinated notes due 2010.

Credence added that holders will purchase an additional $50 million of the 3.5% convertibles.

The transactions are expected to close on Dec. 20.

The 3.5% notes contain a net share settlement feature, which require that, upon conversion, Credence will pay holders in cash for up to the principal amount of the converted notes. The initial conversion price is $8.25.

Based in Milpitas, Calif., manufactures automatic test equipment for analog, digital, memory, mixed-signal and wireless semiconductor devices.

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