IRVINE, Calif., Dec. 7, 2011 /PRNewswire/ -- Newport Corporation (NASDAQ: NEWP) today announced that it has retired $69.6 million in principal amount of its 2.5% convertible subordinated notes due February 15, 2012, for a payment of $70.0 million plus accrued interest. The early retirement of these notes allows Newport to avoid the cash interest that it would have been required to pay, as well as the non-cash amortization of the debt discount and debt issuance costs related to these notes, between December 6, 2011, and their maturity date of February 15, 2012. The total expense savings resulting from the early retirement will be approximately $0.9 million over the remaining term of the notes. The company noted that the principal amount of its convertible notes that remain outstanding is $51.0 million.
Charles F. Cargile, Newport's Senior Vice President and Chief Financial Officer, stated, "We are pleased that we were able to retire a substantial portion of our convertible notes prior to their February 2012 maturity date. The net savings on interest expense is compelling and we reduced our total outstanding debt. We remain very confident in our ability to generate significant cash from operating activities and to capitalize on opportunities to effectively utilize our cash."
ABOUT NEWPORT CORPORATION
Newport Corporation is a leading global supplier of advanced-technology products and systems to customers in the scientific research, aerospace and defense/security, microelectronics, life and health sciences and precision industrial manufacturing markets. Newport's innovative solutions leverage its expertise in photonics technologies, including lasers, photonics instrumentation, sub-micron positioning systems, vibration isolation, optical components and subsystems, precision automation and three-dimensional non-contact measurement equipment, to enhance the capabilities and productivity of its customers' manufacturing, engineering and research applications. Newport is part of the Standard & Poor's SmallCap 600 Index and the Russell 2000 Index.