Hutchinson Technology To Buyback, Exchange Notes
HUTCHINSON, Minn. (AP) – Hutchinson Technology Inc. on Monday began an offer to buy or exchange up to $75.3 million of its 3.25 percent convertible notes due 2026.
Investors may decide to receive new series 8.50 percent convertible senior notes due 2026 or a cash payment of $850 or a combination of the two options.
The Hutchinson, Minn., company, which makes parts for computer disk drives, said it also will pay accrued and unpaid interest on the old notes up to the settlement date.
The purchase and exchange will improve the company’s financial flexibility by extending the first date of a portion of the company’s indebtedness and reduce the overall indebtedness by retiring some of the old notes, the company said.
The offer expires at on Feb. 8 unless it’s terminated or extended by the company.
Shares rose 24 cents, or 6.9 percent, to $3.72 in afternoon trading.
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