Aether Systems Raises $1.4 Billion in Secondary Offering and Concurrent Convertible Debt Offering.Business Editors OWINGS MILLS, Md.--(BUSINESS WIRE)--March 22, 2000 Use of Proceeds Includes Investment In European European emanating from or pertaining to Europe. European bat lyssavirus see lyssavirus. European beech tree fagussylvaticus. European blastomycosis see cryptococcosis. Venture With Reuters Reuters British cooperative news agency. Founded in 1851 by Paul Julius Reuter, it was initially concerned with commercial news but began to serve a growing newspaper clientele after the London Morning Advertiser subscribed in 1858. And Ongoing Acquisition, Venture and Marketing Activities Aether aether: see ether, in physics and astronomy. Aether god of whole atmosphere. [Gk. Myth.: Jobes, 42] See : Air Systems, Inc. (Nasdaq: AETH), a leader in wireless data services and systems, announced today that it has completed its secondary offering and concurrent At the same time. It implies that multiple processes are taking place simultaneously. See concurrent operation. convertible debt offering, raising approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $1.4 billion. The company sold approximately 5.4 million shares of common stock, including shares sold pursuant to exercise of the underwriters' over-allotment option, at $205 per share for gross proceeds of approximately $1.1 billion. Aether's shareholders also sold approximately 900,000 shares, representing only 2.8 percent of the shares outstanding before the offering. In a concurrent offering, Aether issued approximately $311 million of six percent convertible subordinated Subordinated A claim ranked lower in priority than other claims. Common stock claims are always subordinated to debt. notes due 2005, including notes sold pursuant to exercise of the underwriters' over-allotment option. The notes will be convertible at the option of the holder into shares of Aether common stock. Aether also holds a conversion option at certain redemption prices Redemption price See: Call price redemption price 1. The price at which an open-end investment company will buy back its shares from the owners. In most cases, the redemption price is the net asset value per share. 2. . Aether plans to use the proceeds raised from these offerings to fund pending and potential future acquisitions and strategic investments and for general corporate purposes. Specific allocations from the proceeds of the offerings include the following:
- $100 million to fund a European strategic alliance with Reuters
to provide wireless data services, initially focusing on
financial services.
- $25 million to fund sales and marketing activities, including a
national television and print media advertising campaign
- $19 million to repay debt associated with the January 2000
acquisition of LocusOne.
- $17 million to acquire 9.9 percent of the stock of Metrocall
- $10 million to acquire a 27.5 percent interest in Inciscent, the
new company formed by Metrocall, Aether and PSINet to provide
wireless data services to the small office and home office market
segment.
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