LTX-Credence buys back $34.9 million of its 3.5% convertibles due 2010

By Devika Patel

Knoxville, Tenn., March 12 - LTX-Credence Corp. said it repurchased $34.9 million of its 3.5% convertible senior subordinated notes due May 15, 2010 for a net cash consideration of $30.9 million.

The company will also avoid future interest payments of approximately $1.3 million from the repurchase, resulting in a total cash savings of $5.3 million.

"As stated in the prospectus for our secondary stock offering last week, the proceeds from the offering allowed the company to aggressively pursue the repurchase of our convertible debt," LTX-Credence chief executive officer and president Dave Tacelli said in a press release.

"With the successful conclusion to these negotiations we have now repurchased and retired about 93% of the outstanding notes.

"With our business model performing well, and our stronger balance sheet, we are now focused squarely on gaining market share and expanding our top line."

Formed by the 2008 merger of LTX Corp. and Credence Systems Corp., LTX-Credence is a Milpitas, Calif.-based maker of automated test equipment solutions for the wireless, computing, automotive and entertainment markets.

The convertibles were issued by Credence Systems in December 2006.

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