Key Developments For Photronics, Inc.
Photronics, Inc. (PLAB.O) (Nasdaq)
Photronics, Inc. Completes Common Stock and Convertible Note Offerings
Photronics, Inc. announced the closing of its previously announced common stock and convertible note offerings. The Company sold 11,084,337 shares of its common stock at a price of $4.15 per share. The underwriters exercised in full their option to purchase additional shares to cover overallotments. The Company also completed the sale of $57.5 million principal amount of its 5.5% convertible senior notes due 2014. The underwriters exercised in full their option to purchase additional notes to cover overallotments. The convertible notes will pay interest semi-annually at a rate of 5.5% per annum and will mature on October 1, 2014, unless earlier purchased or converted. The notes are convertible into shares of Photronics common stock at a conversion rate of 196.7052 shares of common stock per $1,000 principal amount of convertible notes, equivalent to a conversion price of approximately $5.08 per share of common stock. The Company received total net proceeds from both offerings of approximately $98 million after deducting fees and offering expenses, and will use the net proceeds to repay a portion of outstanding bank borrowings. Morgan Stanley & Co. Incorporated was the book-running manager for the offerings and Needham & Company, LLC, D.A. Davidson & Co., and Stifel Nicolaus & Company, Incorporated acted as co-managers of the offerings.
Photronics, Inc. Announces Pricing Of Convertible Note And Common Stock Offerings
Photronics, Inc. announced that it has priced its convertible note offering and secondary offering of common stock. Photronics announced that it has agreed to sell 9,638,554 shares of its common stock at a public offering price of $4.15 per share. Photronics has also granted the underwriters an option to purchase up to an additional 1,445,783 shares of common stock to cover over-allotments. Photronics also announced the pricing of its public offering of $50,000,000 aggregate principal amount of senior unsecured convertible notes due 2014. The Company has also granted the underwriters an option to purchase up to an additional $7,500,000 aggregate principal amount of convertible notes to cover over-allotments. The notes are convertible, under certain circumstances, into shares of Photronics common stock at a conversion rate of 196.7052 shares of common stock per $1,000 principal amount of convertible notes, equivalent to a conversion price of approximately $5.08 per share of common stock, subject to adjustment in certain circumstances. Photronics intends to use the net proceeds of $85.2 million from the convertible note and common stock offerings to repay a portion of outstanding bank borrowings. The offerings are expected to close on September 16, 2009. The closing of the convertible note offering and the common stock offering are not contingent on each other. Morgan Stanley & Co. Incorporated is the book-running manager for the offerings
Photronics, Inc. Announces Offering Of Common Stock and Convertible Senior Notes
Photronics, Inc. announced that it intends to offer, subject to market and other considerations, 6,275,000 shares of its common stock and $50,000,000 aggregate principal amount of convertible senior notes maturing in 2014. In connection with these offerings, Photronics intends to grant the underwriters over-allotment options to purchase up to an additional 941,250 shares of common stock and up to an additional $7,500,000 aggregate principal amount of convertible senior notes. The convertible senior notes will be convertible into shares of Photronics common stock. The interest rate, conversion price and other terms of the convertible senior notes will be determined by negotiations between Photronics and the underwriters. Morgan Stanley is acting as the sole book-runner for both offerings. Needham & Company, D.A. Davidson & Co., and Stifel Nicolaus & Company are acting as co-managers of the offerings. Photronics intends to use the net proceeds from these offerings to repay a portion of its outstanding bank borrowings. The closing of each offering is not conditioned upon the closing of the other.
Photronics, Inc. Issues Q4 2009 Outlook; Earnings Outlook Below Analysts' Estimates-Conference Call
Photronics, Inc. announced that for the fourth quarter of 2009 it expects revenue in the range of $92 to $97 million and loss per share, excluding the impact of the charges related to the consolidation charges and exclusive of the potential mark-to-market impact of the recently issued warrants, to be in the range of $0.15 to $0.09. According to Reuters Estimates, analysts on an average are expecting the Company to report loss per share of $0.08 on revenue of $95 million for the fourth quarter of 2009.
Photronics, Inc. To Close Shanghai, China Facility
Photronics, Inc. announced that it has closed its integrated circuit photomask manufacturing facility in Shanghai, China. The closure is consistent with Photronics, Inc. strategy to reduce costs and lower its operational breakeven point. Photronics, Inc. estimates that 75 employees will be affected by the closure. Due to the ability to service customers from other Photronics, Inc.'s locations.
