This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Hutchinson Technology Announces Notes Repurchase And Private Placement Financing

HUTCHINSON, Minn., Jan. 23, 2013 (GLOBE NEWSWIRE) -- Hutchinson Technology Incorporated (Nasdaq:HTCH) announced today that it completed the repurchase of $18,682,000 aggregate principal amount of its outstanding 8.50% Convertible Senior Notes due 2026 (the "8.50% Convertible Notes") from certain holders for cash totaling $11,582,840, plus accrued and unpaid interest. The repurchased 8.50% Convertible Notes are being retired, and a total of $39,822,000 aggregate principal amount of 8.50% Convertible Notes remain outstanding.

The repurchase was financed through a private placement completed January 22, 2013, with an accredited institutional investor for the sale of $12,200,000 aggregate principal amount of 10.875% Senior Secured Second Lien Notes due 2017 (the "10.875% Notes"). The company received cash proceeds of $11,590,000 from the private placement, all of which were used to fund the repurchase of the 8.50% Convertible Notes.

David Radloff, Hutchinson Technology's chief financial officer, said the refinancing improves the company's financial position by extending the maturity on a portion of its debt and reducing its overall debt balance by $6,482,000 while maintaining its cash levels.

The 10.875% Notes bear interest at a rate of 10.875% per annum, payable semiannually in arrears on January 15 and July 15 of each year, beginning July 15, 2013, and mature on January 15, 2017, unless redeemed or repurchased in accordance with their terms. The 10.875% Notes are secured by liens on substantially all of the personal and real property of the company, which liens rank equally and ratably with liens securing the company's outstanding 8.50% Senior Secured Second Lien Notes due 2017 (the "8.50% Secured Notes") and junior in priority to any liens securing the company's existing or future senior secured credit facilities (other than certain excluded assets).

In connection with the closing of the private placement, amendments to the company's existing senior secured credit facility agreement and the company's indenture governing its 8.50% Secured Notes became effective. The terms of the credit facility and indenture were amended to, among other things, permit the incurrence of the debt represented by the 10.875% Notes, the granting of the second priority liens to secure the 10.875% Notes and the repurchase of the 8.50% Convertible Notes.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $94.30 -0.92%
FB $118.08 0.55%
GOOG $695.81 0.50%
TSLA $234.18 0.80%
YHOO $35.97 -0.11%


Chart of I:DJI
DOW 17,651.26 -99.65 -0.56%
S&P 500 2,051.12 -12.25 -0.59%
NASDAQ 4,725.6390 -37.5850 -0.79%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs