Sensormatic Announces Placement of $150 Million of Convertible Preferred Stock.BOCA RATON, Fla.--(BUSINESS WIRE)--April 7, 1998--Sensormatic Electronics Corporation (SRM (1) (Storage Resource Management) The management of the storage resources in an organization in order to avoid duplication of files and to determine space utilization across all servers. :NYSE NYSE
See: New York Stock Exchange ) 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 Convertible Preferred Stock
Preferred stock that includes an option for the holder to convert the preferred shares into a fixed number of common shares, usually anytime after a predetermined date. Also known as "convertible preferred shares". .
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 Net Proceeds
The amount received after all costs are deducted from the sale of a piece of property or security.
In the case of an investor selling a security, net proceeds represent the proceeds from the sale minus any trading costs (i.e. commissions). from the 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. offering primarily to repay the balance outstanding under its 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 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 consumer goods
Any tangible commodity purchased by households to satisfy their wants and needs. Consumer goods may be durable or nondurable. Durable goods (e.g., autos, furniture, and appliances) have a significant life span, often defined as three years or more, and 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 http://www.sensormatic.com.
CONTACT: Sensormatic Electronics Corporation, Boca Raton
Lee Pernice, Manager of Communications
Alison Tanner, Director of Investor Relations Investor relations
The process by which the corporation communicates with its investors.