Cypress may purchase 1% convertible senior notes

By Jennifer Chiou

New York, Feb. 22 - Cypress Semiconductor Corp.'s board authorized an additional $300 million to the company's stock repurchase program, and in doing so, Cypress may also repurchase its outstanding 1% convertible senior notes due Sept. 15, 2009, according to an 8-K filed with the Securities and Exchange Commission.

On Jan. 22, the company said that the 1% notes will be convertible through March 31 because for at least 20 trading days during the 30 consecutive trading days up to Dec. 31, the closing price of the company's common stock was higher than $31.07, or 130% of the conversion price of the notes.

Holders who convert will receive cash for the principal amount and, at the company's option, common stock for any premium, if applicable.

The additional $300 million doubles the size of the repurchase program. To date, the company has purchased 12.2 million shares of stock at a cost of $269 million under the buyback program, leaving $331 million available for additional expenditure.

Cypress is a San Jose, Calif.-based semiconductor manufacturer.

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