Stratus Technologies accepts tenders for $5 million units of 12% notes

By Susanna Moon

Chicago, June 30 - Stratus Technologies Bermuda Holdings Ltd. said it purchased $4,997,000 of its subsidiaries' 12% senior secured notes due 2015 in the form of 4,997 units in its oversubscribed excess cash offer.

The offer expired at 11:59 p.m. ET on June 27. It began on May 31.

The company offered to pay 120% of par to purchase up to 5,000 outstanding units consisting of $480 principal amount of 12% notes issued by Stratus Technologies Bermuda Ltd., a wholly owned direct subsidiary, and $520 principal amount of 12% notes issued by Stratus Technologies, Inc., a wholly owned indirect subsidiary.

Stratus also will pay accrued interest to the settlement date.

Stratus said it purchased notes on a pro rata basis because it received tenders for more than 5,000 units.

Under the terms of the units and notes, the issuers were required to make an offer to purchase notes as units using all of the company's excess cash flow for the fiscal year ended Feb. 27. But because the company's excess cash flow for that year was less than $5 million, the offer amount was set at $5 million.

Stratus is a Maynard, Mass.-based information technology company.

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