Arris redeems $51.5 million convertibles

New York, Nov. 14 - Arris Group, Inc. said it redeemed $51.5 million of its 4½% convertible subordinated notes due May 15, 2003 during October.

The Duluth, Ga. broadband network and data and telephony systems company spent $50.0 million to buy back the notes in private transactions. Arris used cash from operations as funding.

Arris now has $48.1 million of the notes outstanding which it expects to redeem at maturity using cash from operations, borrowings under its credit facility, proceeds from asset sales or otherwise. To redeem the notes, the company must meet tests under the credit facility including the absence of any event of default, having at least $15.0 million in cash and/or credit availability and achieving a cumulative consolidated EBITDA for the third and fourth quarters of 2002 and the first quarter of 2003 of at least $32.85 million. If the company does not meet those requirements it will have to seek a waiver to allow it to redeem the notes.

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