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Sensormatic Announces Placement of $150 Million of Convertible Preferred Stock.

BOCA RATON, Fla.--(BUSINESS WIRE)--April 7, 1998--Sensormatic Electronics Corporation (SRM:NYSE) announced today that it has priced its previously announced Rule144A offering of six million depositary shares, each representing a one-tenth interest in a share of a new class of convertible preferred stock.

Sensormatic has agreed to sell $150 million of the depositary shares, plus up to an additional $22.5 million of the depositary shares to cover over-allotments, if any. The convertible preferred stock will have an annual dividend equal to 6-1/2% of each preferred share's liquidation preference of $250. The convertible preferred stock and related depositary shares will be convertible, at the option of the holder, into shares of Sensormatic's common stock at an initial conversion price of $19.52 per Sensormatic common share, representing a conversion premium of 22%. The depositary shares and convertible preferred stock will be nonredeemable for three years.

Sensormatic will use the net proceeds from the Rule 144A offering primarily to repay the balance outstanding under its revolving credit facility and to pay the remaining $43.5 million, plus interest, due as a result of its recently settled stockholder class action.

The depositary shares and the convertible preferred stock have not been registered under the Securities Act of 1933, as amended, or any state securities laws and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements under such laws.

This news release shall not constitute an offer to sell or the solicitation of an offer to buy the depositary shares mentioned herein.

The Company from time to time makes forward-looking statements in its public disclosures. Important risks and uncertainties that could cause the Company's results to differ materially from those contained in such forward-looking statements are detailed in the Company's filings under the federal securities laws, including its annual, periodic and current reports.

Sensormatic Electronics Corporation is a leading supplier of electronic security systems to the retail, commercial and industrial marketplaces. Sensormatic is also a leader in integrated source tagging -- a process where consumer goods manufacturers insert anti-theft tags at the point of manufacturing or packaging.

For more information on Sensormatic, visit its homepage on the World Wide Web at

CONTACT: Sensormatic Electronics Corporation, Boca Raton

Lee Pernice, Manager of Communications



Alison Tanner, Director of Investor Relations

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Publication:Business Wire
Date:Apr 7, 1998
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