Powerchip holders convert 96.5% of zero-coupon bonds due 2009

By Susanna Moon

Chicago, July 6 - Powerchip Semiconductor Corp. said holders converted 96.5% of the company's $156.4 million outstanding zero-coupon convertible bonds due June 17, 2009.

The company issued $150 million of the bonds with an additional $8.05 million.

On June 26 the company said it obtained the necessary shareholder approval for the conversion price reset of the convertibles.

The reset price was determined to be NT$5.25.

Powerchip also extended the conversion deadline on the notes to 10 a.m. ET on July 3 from June 25.

The company previously announced that it obtained conversion notices from holders of 95.4% of the bonds and encouraged the rest of its bondholders to convert, saying that if all bonds are converted, it would be able to file an application for resumption of normal trading of its common shares.

The conversion price had been temporarily reset downward so that holders who converted under the invitation would receive common shares with a market value of $600 per $1,000 principal amount of bonds converted.

Bondholders also received $400 in cash per $1,000 principal amount of bonds converted.

Hsinchu, Taiwan-based Powerchip makes memory products.

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