News Article
RFMD Repurchases and Retires $110 Million
Since the firm repurchased and retired the 2012 Notes early, paying $0.97 per $1.00 of par value for the 2012 Notes and retiring the 2010 Notes at maturity, the aggregate principal amount of 2012 Notes outstanding is now $97.7 million.
RF Micro Devices has repurchased and retired $110 million aggregate principal amount of its outstanding convertible subordinated notes, using cash on hand.
The retired convertible subordinated notes consist of $100,000,000 aggregate principal amount of convertible subordinated notes due 2012 (the "2012 Notes"), equal to 51% of all outstanding 2012 Notes, and $10,000,000 aggregate principal amount of convertible subordinated notes due 2010 (the "2010 Notes"), equal to 100% of all outstanding 2010 Notes.
RFMD repurchased and retired the 2012 Notes early, paying $0.97 per $1.00 of par value for the 2012 Notes, and RFMD retired the 2010 Notes at maturity, paying the principal, or face, amount of the 2010 Notes. The aggregate principal amount of 2012 Notes outstanding is now $97.7 million.
RFMD expects to eliminate future cash interest expense of approximately $1.3 million between now and when the 2012 Notes mature in April 2012 as a result of the repurchase and early retirement of the $100,000,000 aggregate principal amount of the 2012 Notes. Since the March 2008 quarter, RFMD has repurchased 30 million shares of its common stock and retired approximately $372 million original principal amount of its total convertible debt.
Dean Priddy, CFO of RFMD, said, "RFMD's robust business model and resulting strong free cash flow are enabling us to enhance our capital structure significantly. Looking forward, we are forecasting continued strong free cash flow, and our potential uses of cash include share buybacks, additional bond repurchases and incremental investment in our growth strategy."
RFMD defines free cash flow as net cash provided by operating activities during the period, minus property and equipment expenditures made during the period.
