Artesyn Technologies Inc. (Boca Raton, FL), a leader in advanced power conversion equipment for the communications industry, announced that it intends to offer, subject to market conditions and other factors, $75 million of convertible senior subordinated notes due 2010. The net proceeds from the offering will be used to repay Artesyn's existing subordinated convertible note in the principal amount of $50 million and for working capital and general corporate purposes.
The notes will be convertible, at the option of the holder and prior to maturity, into shares of Artesyn's common stock at a conversion price to be determined. Artesyn will have a call option, pursuant to which it may redeem the securities, in part or in whole, on or after August 2008, at 100% of the principal amount, in accordance with conditions specified in the offering memorandum. The company expects to grant the initial purchasers of this offering a 30-day option to purchase up to an additional $22.5 million of the notes.
