CAMARILLO, Calif.--(BUSINESS WIRE)--Vitesse Semiconductor Corporation (Pink Sheets:VTSS) today announced
that it has received the required consents from the bondholders of the
Company’s $96.7 million aggregate principal
amount of 1.5% Convertible Subordinated Debentures due 2024.
The effective date of the approved amendments to the debentures is Nov.
3, 2006. The consents were obtained in accordance with the Company’s
consent solicitation that commenced on Oct. 23, 2006 and expired on Nov.
3, 2006 at 5 p.m. Eastern Time.
In the amendment, the bondholders instructed the Trustee to agree to
forbear from taking any action for 18 months to exercise any rights or
remedies that may relate to Vitesse’s failure
to file reports required under the Securities Exchange Act of 1934. Also
under the agreement, Vitesse agrees not to repay the Debentures pursuant
to the purported acceleration previously sent by the Trustee to the
Company during the last six months of the forbearance period.
In addition, under the amendments to the Debentures, the conversion
price of the Debentures will be permanently decreased to $2.546 per
share of the Company’s Common Stock from $3.92
per share of Common Stock, subject to further adjustment as set forth in
the indenture. The repurchase price with respect to the repurchase
right, exercisable only on Oct. 1, 2009, has been increased to 113.76
percent from 100 percent of the principal amount of the Debentures to be
purchased, plus accrued and unpaid interest. The repurchase price with
respect to the repurchase rights on Oct. 1, 2014 and 2019 did not change.
About Vitesse
Vitesse designs, develops and markets a diverse portfolio of
high-performance, cost-competitive semiconductor solutions for
communications and storage networks worldwide. Engineering excellence
and dedicated customer service distinguish Vitesse as an industry leader
in Gigabit Ethernet LAN, Ethernet-over-SONET, Fibre Channel, Serial
Attached SCSI, Optical Transport, and other applications. Vitesse
innovation empowers customers to deliver superior products for
Enterprise, Access, Metro, and Core applications. Additional company and
product information is available at www.vitesse.com.
Safe Harbor
Statements made in this release that are not historical facts are
"forward-looking" statements (as defined in the Private Securities
Litigation Reform Act of 1995) that involve risks and uncertainties and
are subject to change at any time. These forward-looking statements may
include, but are not limited to, statements containing words such as
"anticipate," "believe," "plan," "estimate," "expect," "hope," "intend,"
and similar expressions. Factors that could cause actual results to
differ are identified in the public filings made by Vitesse with the
Securities and Exchange Commission and include the fact that we have
disclosed that you should not rely upon our published financial
statements and the fact that we have not filed all of our reports
required by the Securities Exchange Act of 1934. More information on
factors that could affect our business and financial results are
included in our public filings made with the Securities and Exchange
Commission, which are available on the web site of the Securities and
Exchange Commission, www.sec.gov.
The forward-looking statements involve known and unknown risks,
uncertainties and other factors that are, in some cases, beyond our
control. We caution investors that any forward-looking statements made
by us are not guarantees of future performance. We disclaim any
obligation to update any such factors or to announce publicly the
results of any revisions to any of the forward-looking statements to
reflect future events or developments.
