The Specified Cash Amount for each $1,000 principal amount of Series A Notes converted will be $1,000.
Company will pay principal in cash and deliver shares for any excess conversion value |
| [03-January-2018] |
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SUNNYVALE, Calif., Jan. 3, 2018 /PRNewswire/ -- Accuray Inc. (NASDAQ: ARAY) has made an irrevocable Net Share Settlement Election with respect to its 3.50% Series A Convertible Senior Notes due February 1, 2018 (the "Series A Notes") pursuant to the indenture dated as of April 24, 2014 (the "Series A Indenture"). The Specified Cash Amount for each $1,000 principal amount of Series A Notes converted will be $1,000. As a result, Accuray will pay cash up to $1,000 for each $1,000 principal amount of Series A Notes converted and deliver shares of its common stock for the conversion value, if any, in excess of $1,000 (other than cash in lieu of any fractional share). The conversion value of any Series A Notes converted on or after today will be determined based on the volume-weighted average price of Accuray's common stock over a 15 business day period beginning on, and including, January 8, 2018. As of December 31, 2017, approximately $26.6 million aggregate principal amount of the Series A Notes were outstanding. The current conversion rate for the Series A Notes is 187.6877 shares of Accuray common stock per $1,000 principal amount of such notes, which is equivalent to a conversion price of approximately $5.33 per share. Holders of the Series A Notes may convert their notes at any time prior to close of business on the business day immediately preceding February 1, 2018. Accuray will pay holders who do not convert their Series A Notes principal plus accrued and unpaid interest in cash on February 1, 2018. Accuray had approximately $94 million of cash, cash equivalents, restricted cash and investments at September 30, 2017. On December 21, 2017, Accuray announced that it closed a new $40 million term loan with MidCap Financial Trust while concurrently reducing the borrowing facility under its existing revolving loan with MidCap by $20 million. The term loan was put in place in part to facilitate payment of the Series A Notes and the Company's 3.50% Convertible Senior Notes due February 1, 2018 (the "2018 Notes"). Capitalized terms used but not defined in this press release have the respective meanings set forth in the Series A Indenture. This press release shall not constitute an offer to sell or a solicitation of an offer to buy the Series A Notes, the 2018 Notes, Accuray common stock or any other securities, and shall not constitute an offer, solicitation or sale in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful. About Accuray Safe Harbor Statement Forward-looking statements speak only as of the date the statements are made and are based on information available to Accuray at the time those statements are made and/or management's good faith belief as of that time with respect to future events. The Company assumes no obligation to update forward-looking statements to reflect actual performance or results, changes in assumptions or changes in other factors affecting forward-looking information, except to the extent required by applicable securities laws. Accordingly, investors should not put undue reliance on any forward-looking statements. Investor Contact: Media Contacts:
View original content with multimedia:http://www.prnewswire.com/news-releases/accuray-elects-net-share-settlement-for-350-series-a-convertible-senior-notes-due-2018-300577185.html SOURCE Accuray Incorporated |
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Company Codes: NASDAQ-NMS:ARAY |
