BEAVERTON, Ore., Jun. 29 /PRNewswire-FirstCall/ -- Tektronix, Inc. today announced the completion of a private placement of $300 million aggregate principal amount of senior convertible notes due 2012 to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended (the "Act"). Initial purchasers also exercised the option to purchase an additional $45 million aggregate principal amount of notes, bringing the total issuance to $345 million. The notes will bear interest at a rate of 1.625% per year. Concurrent with the offering, the company used approximately $110 million of the net proceeds from the offering to purchase approximately 3.2 million shares of its common stock. The company used approximately $30.5 million of the net proceeds from the offering to fund the net cost of certain convertible note hedge and warrant transactions in connection with the offering. The balance of the net proceeds from the offering will be used to purchase additional shares of Tektronix common stock under the company's share repurchase program and for general corporate purposes. Including the above-described repurchase of approximately $110 million worth of shares of our common stock, Tektronix expects to repurchase approximately $300 million worth of shares of our common stock within one year of the closing of the sale of notes.
"This offering reflects Tektronix commitment to enhance shareholder value and improve earnings per share through our share repurchase program," stated Rick Wills, Tektronix, Chairman and CEO. In connection with this offering, Tektronix' Board of Directors authorized an incremental $350 million to repurchase shares of common stock in the open market and in privately negotiated transactions under the company's share repurchase program. Since the program was initiated in January 2000 and including the authorization in connection with this offering, the board has authorized $1,600 million for share repurchase.
This press release includes forward-looking statements, within the meaning of the Private Securities Litigation Reform Act of 1995, that are subject to risks, uncertainties and other factors, including our ability to repurchase shares at acceptable prices. These risks, uncertainties and other factors could cause actual results to differ materially from those referred to in the forward-looking statements. The reader is cautioned not to rely on these forward-looking statements. Other risks that could impact the offering are described in detail in the Tektronix Annual Report on Form 10-K for the year ended May 27, 2006 and the Tektronix Quarterly Reports on Form 10-Q for the quarterly periods ended August 26, 2006, November 25, 2006 and February 24, 2007, respectively, all as filed with the U.S. Securities and Exchange Commission. All forward-looking statements are based on information currently available to Tektronix and Tektronix assumes no obligation to update any such forward-looking statements.
About Tektronix
Tektronix is a leading supplier of test, measurement, and monitoring products, solutions and services for the communications, computer, and semiconductor industries -- as well as military/aerospace, consumer electronics, education and a broad range of other industries worldwide. With 60 years of experience, Tektronix enables its customers to design, build, deploy, and manage next-generation global communications networks, advanced and pervasive technologies. Headquartered in Beaverton, Oregon, Tektronix has operations in 19 countries worldwide. Tektronix' Web address is http://www.tektronix.com/.
