Photronics Closes Common Stock and Convertible Note Offerings

Photronics, Inc., a company supplying imaging technology solutions for the global electronics industry, HAS announced the closing of its previously announced common stock and convertible note offerings.

In a release on September 16, the Company noted that it sold 11,084,337 shares of its common stock at a price of $4.15 per share. The underwriters exercised in full their option to purchase additional shares to cover overallotments.

The Company also completed the sale of $57.5 million principal amount of its 5.5 percent convertible senior notes due 2014 (the "notes"). The underwriters exercised in full their option to purchase additional notes to cover overallotments. The convertible notes will pay interest semi-annually at a rate of 5.5 percent per annum and will mature on October 1, 2014, unless earlier purchased or converted. The notes are convertible into shares of Photronics common stock at a conversion rate of 196.7052 shares of common stock per $1,000 principal amount of convertible notes, equivalent to a conversion price of approximately $5.08 per share of common stock, subject to adjustment in certain circumstances.

The convertible notes will be Photronics' senior unsecured obligations and will rank equally with any existing and future unsecured senior debt, and senior to any existing and future subordinated debt.

The Company received total net proceeds from both offerings of approximately $98 million after deducting fees and offering expenses, and will use the net proceeds to repay a portion of outstanding bank borrowings.

Morgan Stanley & Co. Inc. was the book-running manager for the offerings and Needham & Company, D.A. Davidson & Co., and Stifel Nicolaus & Company, Inc. acted as co-managers of the offerings.

Photronics is a worldwide manufacturer of photomasks. Photomasks are high precision quartz plates that contain microscopic images of electronic circuits.

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