Richardson Electronics exchanges $44.7 million 7¼%, 8¼% convertibles for 7¾% convertibles

New York, Feb. 15 - Richardson Electronics Ltd. said it exchanged $44.7 million principal amount of its existing 7¼% convertible subordinated debentures due Dec. 15, 2006 and 8¼% convertible senior subordinated debentures due June 15, 2006 for $44.7 million of new 7¾% convertible senior subordinated notes due Dec. 15, 2011.

The new notes are convertible at a price of $18.00 per share, a 69% premium over the average closing price for the previous 20 trading days of $10.68.

Richardson can force conversion from Dec. 19, 2006 onwards if its stock trades above 125% of the conversion price for 20 out of 30 trading days.

The notes will be callable at par from Dec. 19, 2006, subject to a 125% hurdle and will have a hard call at par from Dec. 19, 2007.

Richardson reported that Loomis Sayles & Co. exchanged $14.9 million of the 7¼% notes and T. Rowe Price Associates, Inc. exchanged $4.1 million of the same notes.

The LaFox, Ill., engineering company said that following the exchange it has $4.8 million of the 7¼% convertibles outstanding and $17.5 million of the 8¼% issue.

Richardson has agreed to register the new convertibles for trading within 90 days.

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