Brightpoint Issues "LYONs".INDIANAPOLIS--(BUSINESS WIRE)--March 6, 1998--Brightpoint, Inc. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :CELL) announced today that it has agreed to issue and sell to Merrill Lynch Merrill Lynch & Co., Inc. (NYSE: MER TYO: 8675 ), through its subsidiaries and affiliates, provides capital markets services, investment banking and advisory services, wealth management, asset management, insurance, banking and related products and services on a global basis. & Co. $335,000,000 aggregate principal amount at maturity of the Company's Liquid Yield Option(TM) Notes ("LYONs"(TM)) due 2018, at a price of $452.89 (less underwriting discounts and commissions) per each $1,000 face amount of LYONs (the "Offering Price"). It is expected that the transaction will be consummated on March 11, 1998. The LYONs, which are zero coupon subordinated notes, were priced with a yield to maturity of 4.00%, which will result in gross proceeds to Brightpoint of $151,718,150. The Company intends to use the proceeds received by it to reduce the amounts outstanding under its existing revolving credit Revolving Credit A line of credit where the customer pays a commitment fee and is then allowed to use the funds when they are needed. It is usually used for operating purposes, fluctuating each month depending on the customers current cash flow needs. facility. Merrill Lynch is offering the LYONs for resale to certain qualified purchasers in transactions not requiring registration under the Securities Act of 1933, as amended, including pursuant to Rule 144A Rule 144A A Securities & Exchange Commission rule modifying a two-year holding period requirement on privately placed securities to permit qualified institutional buyers to trade these positions among themselves. thereunder. In addition, the Company has granted Merrill Lynch a 30-day option to purchase all or part of an additional $45,000,000 aggregate principal amount at maturity of LYONs, at the Offering Price, solely for the purpose of covering over-allotments. The LYONs will be convertible at any time into 19.109 shares of Brightpoint, Inc. common stock per each $1,000 face amount LYON, representing an initial conversion price of $23.70 (20% above the March 5, 1998 closing bid price for Brightpoint, Inc. common stock on the NASDAQ National Market System). The LYONs will be redeemable in cash by the Company at any time on or after March 11, 2003. This press release shall not constitute an offer to sell or the solicitation of an offer to buy the LYONs nor shall there be any sale of the LYONs in any state in which such offer, solicitation or sale would be unlawful. Brightpoint is a leading provider of distribution and value-added logistics services to the wireless communications wireless communications System using radio-frequency, infrared, microwave, or other types of electromagnetic or acoustic waves in place of wires, cables, or fibre optics to transmit signals or data. industry. Brightpoint facilitates the effective and efficient distribution of handsets and related accessories from leading manufacturers to network operators, agents, resellers, dealers and retailers. "Forward-looking statements" as defined in the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995 may be included in this news release. A variety of factors could cause the Company's actual results to differ from the reported results expressed in such forward-looking statements. Investors are referred to the Company's Cautionary Statements (Exhibit 99 to the Company's most recent Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. ), which statements are incorporated into this news release by reference. (TM) Trademark of Merrill Lynch & Co., Inc. CONTACT: Brightpoint, Inc., Indianapolis, Indiana “Indianapolis” redirects here. For other uses, see Indianapolis (disambiguation). Indianapolis (IPA: [ˌɪndiəˈnæpəlɪs]) is the capital city of the U.S. Phillip A. Bounsall, 317/297-6100 |
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