SAN JOSE, Calif., Sept. 14, 2009 (GLOBE NEWSWIRE) -- Magma(R) Design Automation, Inc. (Nasdaq:LAVA) today announced the final results of its offer to exchange (the "Exchange Offer") up to $49,939,000 aggregate principal amount of its 6.0% Convertible Senior Notes due 2014 (the "Exchange Notes") for any and all of the $49,939,000 aggregate principal amount of its currently outstanding 2.0% Convertible Senior Notes due May 15, 2010 (the "Existing Notes"). The Exchange Offer expired at midnight EDT on Friday, Sept. 4, 2009. The final results were unchanged from the preliminary results announced Tuesday, Sept. 8, 2009.
"As we stated earlier this week when we announced the preliminary results, the positive response by the majority of the bondholders to the exchange offer substantially improves Magma's balance sheet," said Magma Chief Financial Officer Peter S. Teshima. "With $63 million in cash and short-term investments we believe we have sufficient resources to retire the remaining balance of the notes not tendered in this exchange with either cash on hand or cash generated through the normal course of business. We may also utilize external financing options available to us toward note repurchase or strengthening of our product portfolio should this approach prove sufficiently attractive, but the successful final outcome of this note exchange allows us much greater financial and operational flexibility."
In accordance with the terms and conditions of the Exchange Offer, and based on the final count by U.S. Bank National Association, the exchange agent for the Exchange Offer, on Friday, Sept. 11, 2009, the settlement date for the Exchange Offer, the company accepted for exchange $26,689,000 aggregate principal amount of the Existing Notes for the previously announced exchange consideration of $1,000 principal amount of Exchange Notes per $1,000 principal amount of Existing Notes validly tendered and not withdrawn in the Exchange Offer.
Unpaid interest on Existing Notes accepted in the Exchange Offer, accrued until but excluding the settlement date, was paid in cash.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sales of these securities in any state in which such offer, solicitation or sale would be unlawful before registration or qualification under the securities laws of any such state.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements include statements about Magma's intention to retire the Existing Notes not tendered in the Exchange Offer and are subject to risks and uncertainties that could cause actual results to differ materially from Magma's current expectations. Factors that could cause or contribute to such differences include, but are not limited to: the risk that the company may not be able to repurchase the Existing Notes not tendered in the Exchange Offer, as a result of insufficient cash on hand or generated through operations or the possibility that any external financing options may not be available in sufficient amounts, when needed or on terms acceptable to the company. Further discussion of these and other potential risk factors may be found in Magma's public filings with the Securities and Exchange Commission (www.sec.gov), including its Form 10-Q for the fiscal year ended August 2, 2009 and its Registration Statement on Form S-4, as amended on September 3, 2009.
About Magma Design Automation
Magma's electronic design automation (EDA) software is used to create complex, high-performance integrated circuits (ICs) for cellular telephones, electronic games, WiFi, MP3 players, DVD/digital video, networking, automotive electronics and other electronic applications. Magma products for IC implementation, analog/mixed-signal design, analysis, physical verification, circuit simulation and characterization are recognized as embodying the best in semiconductor technology, providing the world's top chip companies the "Fastest Path to Silicon."(TM) Magma maintains headquarters in San Jose, Calif., and offices throughout North America, Europe, Japan, Asia and India. Magma's stock trades on Nasdaq under the ticker symbol LAVA.
Magma is a registered trademark and "Fastest Path to Silicon" is a trademark of Magma Design Automation, Inc.