Stratus Technologies buys $5 million of 12% notes in excess cash flow offer

By Jennifer Chiou

New York, June 27 - Stratus Technologies Bermuda Holdings Ltd. announced the purchase of $5 million of units in its excess cash flow offer to purchase up to 5,000 outstanding units, each comprised of $480 principal amount of 12% senior secured notes due 2015 of subsidiary Stratus Technologies Bermuda Ltd. and $520 principal amount of 12% senior secured notes due 2015 of subsidiary Stratus Technologies, Inc.

The offer ended at 11:59 p.m. ET on June 20.

As reported, the indenture requires the issuers to make an offer to purchase notes as units using 100% of the company's excess cash flow for the fiscal year ended Feb. 24, 2013.

If, however, the company's excess cash flow for the fiscal year was less than $5 million, the offer amount was to be $5 million.

The issuers will pay a purchase price off 120% of the principal amount plus accrued interest to the settlement date.

Stratus Technologies Bermuda Holdings is a Hamilton, Bermuda-based software and hardware technology company. It launched the offer on May 22.

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