Powerwave forces conversion on $60 million of its 1.875% convertibles

By Susanna Moon

Chicago, Dec. 10 - Powerwave Technologies, Inc. elected to convert all $60 million of its outstanding 1.875% convertible subordinated notes due 2024, according to an 8-K filing with the Securities and Exchange Commission.

Under the note terms, the company may convert the notes if the company's common stock has exceeded 125% of the conversion price for at least 20 trading days in any 30-day trading window. This occurred on Dec. 10.

The notes are convertible at a price of $1.70 per share.

The company's shares (Nasdaq: PWAV) closed at $2.57 on Dec. 9.

As a result of the conversion, the company will issue 35,294,117 common shares and pay interest in cash that would have been made from Dec. 30 through Nov. 15, discounted to the present value using a discount rate based on U.S. Treasury bonds with same or similar terms during that period.

The issuer is a Santa Ana, Calif.-based supplier of end-to-end wireless services for wireless communications networks.

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