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Powerchip still negotiating for remainder of two convertibles series
By Jennifer Chiou
New York, May 10 - Powerchip Semiconductor Corp. announced continuing negotiations for the conversion of the following two series of its bonds: the original $150 million of zero-coupon convertible bonds due 2009 and original $130 million of zero-coupon convertible bonds due Feb. 2, 2010.
A month ago, the company said it had made progress in its negotiations, stating that it had accepted $131,311,000 principal amount at maturity of the convertibles due 2010 and had deposited the conversion payment for the converted bonds in an escrow account with the Bank of New York Mellon.
This compares to the company's March announcement in which it said that holders of $121,201,000, or 90.8%, of the convertibles due 2010 had agreed to convert their bonds. On Feb. 4, the company said holders of 87.58% of the $133,467,000 principal amount at maturity of convertibles due 2010 had agreed to convert.
Powerchip noted that $4.5 million of the convertibles due 2009 remains outstanding after most holders converted their bonds in 2009, unchanged from March 31.
To induce conversion, the company already offered a cash payment of about $740 for each $1,000 principal amount of bonds due 2010. The company said that $2,156,000 principal amount at maturity of those notes remains outstanding.
The cash payment was the difference between $1,000 and the market value of the shares issuable upon conversion determined using Powerchip's average closing share price over a period from Jan. 22 to Jan. 28.
The company reiterated that it would like to keep negotiating with the remaining holders of both series of bonds.
Hsinchu, Taiwan-based Powerchip makes memory products.
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