Adaptec Inc, Milpitas, California producer of disk controllers, has converted its entire $5m of long-term debt into equity. The conversion was initiated under a clause covering the notes, which provided for them to be exchanged for shares at any time after the shares traded for 15 days at an average price of $15 or higher. This was achieved in late January. The conversion adds 481,818 new common shares, resulting in a total of 7.47m outstanding. It also eliminates $115,000 per quarter in interest payments that the company had previously been paying. The move eliminates virtually all debt and Adaptec has $19m in cash – and is financially well positioned to support the growth of its business.
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