MILPITAS, Calif., May 18 /PRNewswire-FirstCall/ -- LSI Corporation today announced that all of the outstanding 6.5% Convertible Subordinated Notes due 2009 of Agere Systems Inc. have been called for redemption on June 15, 2009, at a redemption price of 100.43% of the principal amount of each note plus accrued interest to the date of redemption. LSI has guaranteed the notes.
Prior to close of business on June 12, 2009, holders may convert their notes into shares of LSI common stock at a conversion price of $15.3125 per share. On May 18, 2009, the last reported sale price of LSI common stock on the New York Stock Exchange was $3.87 per share.
As of May 15, 2009, $243.0 million aggregate principal amount of the notes were outstanding. The aggregate redemption price will be approximately $244.0 million, assuming no holders of notes convert their notes into shares of LSI common stock.
The redemption price of the notes will be paid from cash on hand. As a result of the redemption, LSI expects to incur a pre-tax charge of approximately $1.0 million and realize non-cash income of approximately $1.6 million that will be reflected in its results for the quarter ending July 5, 2009.
This news release is not a notice of redemption. The redemption is made solely pursuant to the notice of redemption delivered on May 15, 2009, to record holders of the notes.
About LSI
LSI Corporation is a leading provider of innovative silicon, systems and software technologies that enable products which seamlessly bring people, information and digital content together. The company offers a broad portfolio of capabilities and services including custom and standard product ICs, adapters, systems and software that are trusted by the world's best known brands to power leading solutions in the Storage and Networking markets. More information is available at http://www.lsi.com/.
Editor's Notes: 1. All LSI news releases (financial, acquisitions, manufacturing, products, technology, etc.) are issued exclusively by PR Newswire and are immediately thereafter posted on the company's external website, http://www.lsi.com/. 2. LSI and the LSI logo design are trademarks or registered trademarks of LSI Corporation. 3. All other brand or product names may be trademarks or registered trademarks of their respective companies.
LSI Corporation
CONTACT: Investor Relations, Sujal Shah, +1-610-712-5471,
sujal.shah@lsi.com, or Media, Mitch Seigle, +1-408-954-3225,
mitch.seigle@lsi.com, both of LSI Corporation
Web Site: http://www.lsi.com/
