Applied Magnetics Corp, making thin-film and ferrite recording heads for disk and tape drives in Goleta, California, filed with the US Securities & Exchange Commission for a public offering of 4.17m shares, 4m of them new, to raise an indicated $130m net for capital expenditures, debt reduction and working capital; capital expenditures will be devoted primarily to increasing inductive thin-film disk head production capacity and efforts to develop and market magnetoresistive thin-film disk head technology. The offering will be managed Lehman Bros and Needham & Co. Separately, Applied Magnetics said that Conner Peripherals Inc has agreed to provide it with a secured loan of $10m to support investment in equipment required to ramp production volumes of the inductive thin-film disk heads. At Conner’s option, the loan can be converted into Applied Magnetics’ common shares at any time prior to the maturity date, which is December 31 1994.
