Danka issues convertible subordinated notes.ST. PETERSBURG, Fla.--(BUSINESS WIRE)--March 13, 1995--Danka Business Systems PLC (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 :DANKY) announced Monday that it has issued $200 million of 6.75% Convertible Subordinated Notes (the ``Notes'') pursuant to a private placement offering. The Notes were not registered under the Securities Act of 1933, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the Securities Act. The Notes are convertible into the company's American Depositary Shares American Depositary Share (ADS) Foreign stock issued in the US and registered in the ADR system. (``ADSs'') at a conversion rate of U.S. $29.125 per ADS (equivalent to approximately 34.335 ADSs for each U.S. $1,000 principal amount of the Notes), subject to adjustment under certain circumstances. The interest is payable on April 1 and Oct. 1 of each year commencing Oct. 1, 1995. The Notes mature on April 1, 2002 and are redeemable at the option of the company at a premium plus accrued interest Accrued Interest The interest that has accumulated on a bond since the last interest payment up to but not including the settlement date. There are two methods for calculating accrued interest: 1) 360-day year method, used for corporate and municipal bonds. , at any time on or after April 1, 1998. The Notes are not subject to sinking fund provisions. The net proceeds Net Proceeds The amount received after all costs are deducted from the sale of a piece of property or security. Notes: In the case of an investor selling a security, net proceeds represent the proceeds from the sale minus any trading costs (i.e. commissions). of the offering will be used primarily to pay down the outstanding balance of the company's principal credit facility, to satisfy other long and short-term debt Short-term debt Debt obligations, recorded as current liabilities, requiring payment within the year. , and for general corporate purposes, including future acquisitions. Danka Business Systems PLC, headquartered in St. Petersburg, is one of the largest and fastest growing independent suppliers of automated office equipment and related services and supplies in North America and the United Kingdom. Danka's ADSs are listed on the NASDAQ/NMS and its Ordinary shares are listed on the London Stock Exchange London Stock Exchange London marketplace for securities. It was formed in 1773 by a group of stockbrokers who had been doing business informally in local coffeehouses. . CONTACT: Danka Business Systems PLC, St. Petersburg William T. Freeman, 813/576-6003 or Paul G. Dumond, 011-4471-603-1515 |
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