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Technology Stocks : Artesyn Technologies (ATSN) -- Ignore unavailable to you. Want to Upgrade?

To: JakeStraw who wrote (592)	1/17/2002 8:33:43 AM
From: JakeStraw	Read Replies (1) \| Respond to of 603

Artesyn Receives $50 Million Strategic Investment Restructures Credit Facility biz.yahoo.com BOCA RATON, Fla.--(BUSINESS WIRE)--Jan. 17, 2002--Artesyn Technologies, Inc. (Nasdaq:ATSN) today announced that it has received a $50 million investment from an entity controlled by Mr. Bruce Cheng, Founder and Chairman of Delta Electronics, a leading global power supply, electronic component and video display manufacturer. The $50 million investment is being made in Artesyn through a five-year subordinated convertible note. In connection with this investment, Artesyn announced that it has also restructured its existing credit facility. Complementary Business Strategy Forms Basis for Discussions Both Artesyn and Delta are focused on providing advanced solutions to the communications marketplace. Headquartered in Taiwan, the Delta group of companies have annual sales of over $2 billion. In a recent survey of leading manufacturers, Delta ranked as the world's third largest power supply manufacturer, while Artesyn ranked fifth. Delta holds leading market positions in the desktop, server and laptop adapter markets, and is recognized within the electronics industry for their manufacturing and supply chain expertise. ``For a number of years, Bruce Cheng and I have explored various approaches to forming a strategic alliance that would benefit both organizations,'' commented Artesyn's President and CEO, Joseph M. O'Donnell. ``As a result of our closer ties, we anticipate entering into a number of initiatives that will significantly enhance each company's competitive position, including joint sales and marketing and cross-licensing agreements. In addition, we will explore how to collaborate on advanced research projects and other initiatives. The potential synergies between the two companies are substantial, and we are very excited to have Delta as a strategic partner.'' ``We have always admired Artesyn's customer focus and product excellence and are excited about the prospects of working closely with them,'' commented Delta's Mr. Cheng. ``Artesyn has become a technology leader in several areas of AC/DC and DC/DC design. At Delta, we believe that strategic alliances, such as this, are as essential as organic growth to win in today's competitive environment.'' Investment Enhances Artesyn's Financial Position The five-year convertible note carries a three percent interest rate and a conversion price of $11.00 per share, calculated on a 10 percent premium to the prior 10-day trading average. The agreement also contains certain registration rights and warrants to purchase an additional 1.55 million shares of the company's common stock at a price of $11.50 per share. A portion of the proceeds will be used to reduce outstanding debt, while the remaining funds will be used for general corporate purposes. Both parties have the right to redeem the note after three years. Artesyn also announced that it has successfully negotiated an amendment to the company's revolving credit agreement. The new agreement contains an $85 million aggregate commitment level and is backed by certain working capital and other assets. Artesyn believes that this facility, along with current cash balances, will address the company's liquidity needs. Investors will have the opportunity to listen to management's discussion of this release, as well as the fourth quarter financial results, in a conference call to be held on January 22, 2002 at 8:30 a.m. Eastern time either by calling (800) 711-4000 (passcode: O'Donnell) or over the Internet at artesyn.com. To listen to the live call, please go to the web site at least fifteen minutes early to register, download, and install any necessary audio software. The web cast will be available for replay immediately following the teleconference.