RSA Security Raises Additional Funds in Convertible Subordinated Debt Placement
BEDFORD, Mass., Oct. 30 /PRNewswire/ -- RSA Security Inc. (Nasdaq: RSAS)
today announced the sale of an additional $20 million of its Convertible
Subordinated Debentures due October 17, 2004, in a private placement to the
same investment firm that purchased $50 million of debentures on the same
terms on October 17, 2001. The Debentures are convertible into RSA Security
common stock at a price equal to $13.75 per share, bear interest at a rate of
7 percent per annum and mature on October 17, 2004. RSA Security can redeem
the Debentures at any time after October 17, 2002, so long as the price of RSA
Security's common stock exceeds $20.62 for fifteen consecutive trading days.
RSA Security has also issued to the purchaser of the Debentures warrants
to purchase an aggregate of 218,261 shares of RSA Security's common stock at a
price equal to $13.75 per share. The warrants may be exercised at any time
prior to October 17, 2006. Pursuant to an amended and restated registration
rights agreement, RSA Security has agreed to file a registration statement for
the resale of the common stock issuable upon conversion of the Debentures and
upon exercise of the warrants on or before November 16, 2001.
This announcement is neither an offer to sell nor a solicitation of an
offer to buy any of these securities.
The Debentures, the warrants and the common stock issuable upon conversion
of the Debentures and exercise of the warrants have not been registered under
the Securities Act of 1933, as amended (the "Securities Act"), or any state
securities laws, and may not be offered or sold in the United States except
pursuant to an exemption from the registration requirements of the Securities
Act and applicable state securities laws.
Credit Suisse First Boston Corporation acted as placement agent in this
transaction.
About RSA Security Inc.
RSA Security Inc., the most trusted name in e-security(R), helps
organizations build secure, trusted foundations for e-business through its RSA
SecurID(R) two-factor authentication, RSA ClearTrust(R) authorization, RSA
BSAFE(R) encryption and RSA Keon(R) digital certificate management product
families. With more than one billion RSA BSAFE-enabled applications in use
worldwide, more than ten million RSA SecurID authentication users and almost
20 years of industry experience, RSA Security has the proven leadership and
innovative technology to address the changing security needs of e-business and
bring trust to the online economy. RSA Security can be reached at
www.rsasecurity.com.
NOTE: RSA, BSAFE, ClearTrust, Keon, SecurID and The Most Trusted Name in
e-Security are registered trademarks of RSA Security Inc. All other products
and services mentioned are trademarks of their respective companies |
