Microvision restates $10 million in convertible notes

By Sheri Kasprzak

New York, July 29 - Microvision, Inc. said it has amended and restated $10 million in senior secured convertible notes initially issued on March 11.

The restated notes bear interest at Libor plus 300 basis points, with a 6% floor and an 8% ceiling. The new notes will mature on March 15, 2007 and will be convertible into common shares at $5.85 each.

The amended notes will be payable for one-sixth of the principal amount in the last six quarters of the term.

The company may force conversion of the notes if its stock trades above $10.24 per share for 20 of 30 consecutive trading days after the six-month anniversary of the effectiveness of the registration statement.

In exchange for the amendments, the investors received warrants for 750,000 shares, exercisable at $6.84 each through July 25, 2008.

The original notes bore interest at between 6% and 8% annually, with a maturity of two years and a conversion price at $6.84 each. Alternatively, according to the initial terms, the notes were convertible into common shares of subsidiary Lumera Corp. at $5.64 each.

Based in Bothell, Wash., Microvision develops high-resolution displays and imaging systems.

The company's stock slipped $0.08 to close at $6.30 on Friday.

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