Atari Announces Proposed Recapitalization.Business Editors NEW YORK--(BUSINESS WIRE)--Aug. 8, 2003 Atari, Inc. (Nasdaq: ATAR) announced that it has reached an agreement in principle with its parent, Infogrames Entertainment, S.A., under which all Atari's net indebtedness to Infogrames will be satisfied by the issuance of Atari stock. This will leave Atari with no long-term debt Long-Term Debt Loans and financial obligations lasting over one year. Notes: For example debts obligations such as bonds and notes which have maturities greater than one year would be considered long-term debt. . Atari currently owes Infogrames (which now owns approximately 88% of Atari's common stock) approximately $211 million, while two of Infogrames other subsidiaries owe Atari approximately $41 million for sums advanced to them by Atari. Under the agreement in principle between Atari and Infogrames, simultaneously with a proposed underwritten public offering of Atari stock, (a) Atari would assign to Infogrames the debts owed to Atari by the Infogrames subsidiaries in satisfaction of an equal amount of Atari's debt to Infogrames, and (b) the remaining approximately $170 million of Atari's debt to Infogrames would be satisfied by Atari's issuing common stock with a value, based upon the price at which Atari stock is sold in its public offering, equal to the debt being satisfied. At the August 7 closing price of $4.00 per share, this would involve the issuance of approximately 17,500,000 shares. A portion of the shares received by Infogrames through the proposed transaction would be included in Atari's public offering. The precise number of shares will depend on the final terms of the offering, but it will probably be a number of shares with an offering price of between $80 million and $100 million. When Infogrames receives Atari stock in satisfaction of the net amount Atari owes to Infogrames, Atari will have no long-term debt. Also, the elimination of Atari's indebtedness to Infogrames plus the proceeds of the proposed public offering (which Atari expects will be approximately $35 million) would add more than $200 million to Atari's stockholders' equity Stockholders' Equity The portion of the balance sheet that includes capital received from investors in exchange for stock (paid-in capital), donated capital, and retained earnings. This is equal to total assets minus liabilities, preferred stock and intangible assets. . At the same time as the debt satisfaction, an agreement by which an Infogrames subsidiary licenses Atari to use the name "Atari" would be extended to December 31, 2013. Atari would issue 2 million shares of common stock in exchange for the license extension, which would be royalty free for five years and would bear an annual royalty based on Atari's net revenues during the subsequent years of the license term. The agreement in principle between Atari and Infogrames is subject to approval of final documents by the Boards of Directors of both companies, and to completion of the proposed public offering of Atari shares. About Atari New York-based Atari, Inc. (Nasdaq: ATAR) develops interactive games for all platforms and is one of the largest third-party publishers of interactive entertainment software in the U.S. The Company's 1,000+ titles include hard-core, genre-defining games such as Driver(TM), Enter the Matrix(TM), Neverwinter Nights This article is about the 2002 computer role-playing game. For the AOL MMORPG, see Neverwinter Nights (AOL game). Neverwinter Nights (NWN), produced by BioWare and published by Infogrames (now Atari), is a third-person perspective computer role-playing (TM), Stuntman stunt·man n. A man who substitutes for a performer in scenes requiring physical daring or involving physical risk. stuntman n → especialista m stuntman (TM), Test Drive(R), Unreal(R) Tournament 2003, and Unreal(R) Championship; and mass-market and children's games such as Backyard Sports(TM), Nickelodeon's Blue's Clues Blue's Clues is a children's show about a dog named Blue. It features live action one on one on paper-cutout animation. The series follows a dog named Blue through her everyday life, providing small children with fun and education. The show airs on both Nick Jr. and Noggin. (TM) and Dora the Explorer Dora the Explorer is an animated television series that is carried on the Nickelodeon cable television network. A pilot episode for the series aired in 1999, and Dora the Explorer became a regular series in 2000. (TM), Civilization(R), Dragon Ball Z “DBZ” redirects here. For the meteorological term, see dBZ (meteorology). Dragon Ball Z (ドラゴンボールZ (R) and RollerCoaster Tycoon(R). Atari, Inc. is a majority-owned subsidiary majority-owned subsidiary A firm in which more than 50% of outstanding voting stock is owned by the parent company. of France-based Infogrames Entertainment SA (Euronext 5257), the largest interactive games publisher in Europe. For more information, visit www.atari.com. Safe Harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. Statement This press release includes forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. , as that term is defined in Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Actual events may differ materially from what is described in this press release. Factors that could cause actual events to differ materially include, but are not limited to, failure of Atari and Infogrames to agree to terms of definitive agreements, failure of the proposed public offering to take place, either because of factors relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc Atari or because of market conditions, or the failure of the Atari or the Infogrames Board of Directors to approve the final terms of the arrangement between Atari and Infogrames. |
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