Zix redeems $5 million in convertible notes due 2005-2008

By Sheri Kasprzak

New York, June 26 - Zix Corp. has redeemed $5 million in convertible notes due 2005-2008, which completes the redemption of a total of $20 million in previously outstanding notes.

The company paid $5.26 million for the redemption, including principal plus interest.

Amulet Ltd. was the holder of the notes.

Connected to the redemption, Amulet will receive warrants for 781,250 shares, exercisable at $4.48 each. Of the warrants, 390,625 expire on Nov. 2, 2006 and 390,625 expire Nov. 2, 2007.

The notes were issued in November 2004. The notes bore interest at Libor plus 300 basis points and were convertible at $6.00 each.

Dallas-based Zix provides e-mail encryption services for health care, finance, insurance and government entities.

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