Mentor Graphics Corporation Announces Pricing of Private Offering of 6 7/8% Convertible Subordinated Notes Due 2007
WILSONVILLE, Ore.--(BUSINESS WIRE)--May 29, 2002--Mentor Graphics
Corporation (Nasdaq: MENT - News) today announced the pricing of a private
offering of $150 million aggregate principal amount of its 6 7/8%
Convertible Subordinated Notes Due 2007 to be issued pursuant to Rule
144A.
The company has granted to the initial purchasers of the Notes an
option to purchase up to an additional $22.5 million principal amount
of Notes for a period of 30 days from the execution of the purchase
agreement. Mentor Graphics intends to use the net proceeds generated
from the offering to fund its acquisition of Innoveda, Inc. Any
remaining proceeds are expected to be used for general corporate
purposes.
The Notes will bear interest at a rate of 6 7/8% per annum,
payable semi-annually on June 15 and December 15 of each year
commencing December 15, 2002. The Notes will be convertible into the
company's common stock initially at a conversion price of $23.27 per
share. At the initial conversion price, each $1,000 principal amount
of Notes will be convertible into approximately 42.97 shares of the
company's common stock.
The Notes will be redeemable at specified prices declining to 100%
of the principal amount plus accrued and unpaid interest at the
company's option beginning on June 20, 2005, upon at least 20 days but
not more than 60 days notice by mail to holders of Notes.
The holders of the Notes will have the ability to require the
company to repurchase the Notes in the event that the company
undergoes a change of control.
In such case, the repurchase price would be 100% of the principal
amount of the Notes plus accrued and unpaid interest.
The Notes and common stock issuable upon conversion have not been
registered under the Securities Act of 1933, as amended, or any state
securities laws, and may not be offered or sold in the United States
absent registration or an applicable exemption from registration
requirements.
This release contains forward-looking statements, which are made
pursuant to the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995. Investors are cautioned that
forward-looking statements in this release involve risks and
uncertainty that could cause actual results to differ materially from
current expectations.
Contact:
For Mentor Graphics Corporation
Ryerson Schwark, 503/685-1660
or
The Abernathy MacGregor Group
Chuck Burgess
Jason Thompson
212/371-5999
