BROOKFIELD, USA: Photronics Inc., a leader in supplying innovative imaging technology solutions for the global electronics industry, has acquired an additional $5 million aggregate principal amount of its 5.5% convertible senior notes due in October 2014.
The convertible notes were acquired for approximately $3.2 million in cash and approximately 0.7 million shares of its common stock with an approximate value of $6.5 million. As a result, the Company expects to record an after-tax charge of approximately $5 million, of which approximately 80 percent is expected to be noncash. As a result of the after-tax charge and the issuance of common stock, the company's equity will increase by approximately $1.5 million.
The Company previously acquired $30.4 million principal amount of its 5.5 percent convertible senior notes. The remaining outstanding balance of the 5.5 percent convertible senior notes due October 2014 is now $22.1 million.
Photronics is a leading worldwide manufacturer of photomasks. Photomasks are high precision quartz plates that contain microscopic images of electronic circuits. A key element in the manufacture of semiconductors and flat panel displays, photomasks are used to transfer circuit patterns onto semiconductor wafers and flat panel substrates during the fabrication of integrated circuits, a variety of flat panel displays and, to a lesser extent, other types of electrical and optical components. They are produced in accordance with product designs provided by customers at strategically located manufacturing facilities in Asia, Europe, and North America.