Milpitas, CA--February 21, 1997--LSI Logic Corp. (Milpitas, CA) has called for redemption on March 25, 1997 on all of the company's 5 1/2 percent Convertible Subordinated Notes due 2001.
Approximately $143.75 million aggregate principal amount of the Notes are currently outstanding.
Prior to 5 p.m., New York City time, on March 24, 1997, holders may convert their Notes into shares of the company's Common Stock at a price of $12.25 per share, or approximately 81.63 shares of the company's Common Stock per $1,000 principal amount of Notes. On Feb. 19, 1997, the last reported sale price of the Common Stock on the New York Stock Exchange was $32.375 per share.
Alternatively, holders may have their Notes redeemed at a total redemption price of $1,021.53 per $1,000 principal amount of Notes, consisting of a redemption price of $1,020 plus accrued interest of $1.53.
Any Notes not converted on or before 5 p.m., New York City time on March 24, 1997 will be automatically redeemed on March 25, 1997, after which interest will cease to accrue. As long as the market price of the Common Stock is at least $12.52 per share, a holder of the Notes who converts will receive Common Stock with a market value greater than the amount of cash the holder would be entitled to receive upon redemption.
A Notice of Redemption is being mailed to all registered holders of the Notes. Copies of the Notice of Redemption and the form of the Letter of Transmittal (which may be used to surrender Notes for conversion or redemption) may be obtained from the conversion and paying agent, State Street Bank and Trust Company of California, N.A., by calling Jonie Frederick at 213/362-7334; or from the company, by calling Diana Matley at 408/433-4365.
1551 McCarthy Blvd.
Milpitas, CA 95035
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