SUNNYVALE, Calif., July 26, 2011 /PRNewswire/ — Accuray Incorporated
(Nasdaq:
ARAY) (“Accuray”) today announced its intention to
commence an offering, subject to market and other conditions, of
$75 million aggregate principal amount of convertible senior notes
due 2016 (the “notes”), to be offered and sold to qualified
institutional buyers pursuant to Rule 144A under the Securities Act
of 1933, as amended. Accuray intends to grant the initial purchaser
of the notes an option to purchase up to an additional $11.25
million aggregate principal amount of notes. The notes are expected
to be convertible under certain conditions into common stock of
Accuray, cash or a combination thereof, at Accuray’s election. The
notes are expected to mature on August 1, 2016, unless earlier
repurchased, redeemed or converted. The notes are expected to be
redeemable at a redemption price of 100% of their principal amount
plus accrued and unpaid interest, at Accuray’s option on or after
August 1, 2014 if the closing sale price of its common stock
exceeds 130% of the applicable conversion price of the notes for
specified periods. The interest rate, conversion rate and other
terms of the notes are to be determined by negotiations between
Accuray and the initial purchaser of the notes.
Accuray intends to use the proceeds from the sale of the notes
for general corporate purposes, including investing strategically
in expanding its business and new product initiatives.
This announcement is neither an offer to sell nor a solicitation
of an offer to buy any of these securities and shall not constitute
an offer, solicitation or sale in any jurisdiction in which such
offer, solicitation or sale is unlawful.
The notes and any shares of common stock issuable upon
conversion of the notes have not been registered under the
Securities Act of 193
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