January 22, 1999 11:08
MAXTOR CORP amends offer. 7.8 mil common stock.
Excerpted from S-3/A filed on 01/22 by MAXTOR CORP:
MAXTOR CORP amends offer. 7.8 mil common stock.
SUBJECT TO COMPLETION, DATED JANUARY 22, 1999
PROSPECTUS
7,800,000 SHARES
[MAXTOR CORPORATION LOGO]
COMMON STOCK
$ PER SHARE
Maxtor Corporation is selling 7,800,000 shares of its common stock. The
underwriters named in this prospectus may purchase up to 1,170,000 additional
shares of common stock from Maxtor under certain circumstances.
In a separate offering, DECS Trust IV is offering 15,500,000 DECS. The
terms of the DECS provide that DECS Trust IV may distribute shares of Maxtor
common stock owned by Hyundai Electronics America to DECS holders on or about
, 2002, or upon earlier liquidation of DECS Trust IV under certain
circumstances. DECS Trust IV may distribute up to an additional 2,325,000 shares
of Maxtor common stock owned by Hyundai Electronics America to cover rights to
purchase additional DECS granted to the underwriters of the DECS offering.
Maxtor will not receive any of the proceeds from the sale of DECS or the
delivery of the Maxtor common stock owned by Hyundai Electronics America.
Maxtor's common stock is quoted on the Nasdaq National Market under the
symbol "MXTR." The last reported sale price of the common stock on the Nasdaq
National Market on January 19, 1999, was $19.31 per share.
INVESTING IN OUR COMMON STOCK INVOLVES CERTAIN RISKS. SEE "RISK FACTORS"
BEGINNING ON PAGE 6.
Neither the Securities and Exchange Commission nor any state securities
commission has approved or disapproved of these securities or determined if this
prospectus is truthful or complete. Any representation to the contrary is a
criminal offense.
TABLE
CAPTION
PER SHARE TOTAL
S C C
Public Offering Price....................................... $ $
Underwriting Discounts...................................... $ $
Proceeds to Maxtor (before expenses)........................ $ $
TABLE
The underwriters are offering the shares subject to various conditions. The
underwriters expect to deliver the shares to purchasers on or about ,
1999.
SALOMON SMITH BARNEY
HAMBRECHT & QUIST
LEHMAN BROTHERS
MERRILL LYNCH & CO.
NATIONSBANC MONTGOMERY SECURITIES LLC
, 1999
(End of Item Excerpt)
(End of Item Excerpt)
USE OF PROCEEDS
Our anticipated net proceeds from the sale of our common stock in the stock
offering are estimated to be approximately $142.9 million (approximately $164.6
million if the underwriters fully exercise their right to purchase additional
shares of common stock in the stock offering), after deducting the underwriting
discounts and estimated offering expenses payable by Maxtor. We will not receive
any proceeds from the sale of the DECS.
We will use up to approximately $55.0 million of the net proceeds from the
stock offering to prepay without penalty outstanding aggregate principal
indebtedness of $55.0 million owing to Hyundai Electronics America under a
subordinated note due July 31, 2001. The subordinated note bears interest at
six-month LIBOR plus 2%.
The remaining approximately $87.9 million of the net proceeds from the
stock offering (approximately $109.6 million if the underwriters fully exercise
their right to purchase additional shares of common stock in the stock offering)
will be used for capital expenditures, working capital and general corporate
purposes. Pending such uses, we will invest the net proceeds of the stock
offering in investment grade, interest-bearing securities.
(End of Item Excerpt)
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