Chips and Technologies Inc. will call its 8 1/2% convertible subordinated debentures for redemption.SAN JOSE San Jose, city, United States San Jose (sănəzā`, săn hōzā`), city (1990 pop. 782,248), seat of Santa Clara co., W central Calif.; founded 1777, inc. 1850. , Calif.--(BUSINESS WIRE)--May 24, 1995--Chips and Technologies announced today that it is calling for redemption effective July 1 its 8 1/2% Convertible Subordinated Debentures ("Debentures"), which are due in 2002. The holders of the debentures have the right to convert the debentures to common stock at $5.70 per share prior to the redemption date Redemption date The date on which a bond matures or is redeemed. redemption date The date on which a debt security is scheduled to be redeemed by the issuer. The redemption date is the scheduled maturity date or, if applicable, a call date. . The company's common stock closed on May 23 at 10 5/8. The company currently includes in its fully diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of calculations the 1,387,719 shares issuable upon conversion of the debentures to stock. If all the $7.9 million in debentures are converted into stock, the company's interest expenses will be reduced by $670,000 annually. "The company appreciates the support of these debenture holders who invested in Chips three years ago," commented James Stafford James Francis Cardinal Stafford (born July 26, 1932 in Baltimore, Maryland) is an American prelate and the Major Penitentiary of the Roman Catholic Church, one of the highest ranking members of the Roman Curia from the United States and the second American to serve as Major , president and chief executive officer, "and we look forward to having them as stockholders." CONTACT: Chips and Technologies Chips and Technologies (C&T) was the first fabless semiconductor company, a model developed by its founder Gordon Campbell. Its first product was an EGA IBM compatible graphics chip. This was followed by chipsets for PC motherboards and other computer graphics chips. Inc., San Jose Tim Christoffersen, 408/434-0600 |
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