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GSI Group launches $85 million rights offering, announces details
By Caroline Salls
Pittsburgh, June 4 - GSI Group Inc. planned to launch its $85 million rights offering on Friday, according to an 8-K filed with the Securities and Exchange Commission.
Under its confirmed plan of reorganization, the company will offer a maximum of $85 million of the new common shares of reorganized GSI at a price of $1.80 per share by granting holders of common shares as of July 7 and holders of rights to holding company common shares that have vested as of June 4 a non-transferable entitlement to elect to subscribe for new common shares.
Specifically, 47.22 million new common shares will be offered to eligible holders, and an additional 11.11 million of new common shares will be issued for exchange with backstop investors.
The company said it will exchange 48.58 million of shares for 47.9 million of existing shares.
In addition, 2.78 million new common shares will be allotted for a supplemental equity exchange.
A total of 109.7 million shares will be outstanding after the plan effective date if the rights offering is fully subscribed.
The rights offering proceeds will be used to pay senior notes claims under GSI Group's plan.
As previously reported, GSI Group expects to emerge from bankruptcy by July 23.
Bedford, Mass.-based GSI makes precision motion component products, lasers and laser-based manufacturing systems. The company filed for bankruptcy on Nov. 20, 2009 in the U.S. Bankruptcy Court for the District of Delaware. Its Chapter 11 case number is 09-14109.
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