Midway Convertible Note Offering Increased to $75 Million
September 15 2005 - 6:30AM
Business Wire
Midway Games Inc. (NYSE:MWY) announced today that the initial
purchasers in its previously announced private offering of $65
million of 6% Convertible Senior Notes due 2025 have exercised in
full their option to purchase an additional $10 million principal
amount of notes. The purchase agreement granted the initial
purchasers 30 days to exercise this option. It is expected that the
closing relating to the full $75 million principal amount of notes
will occur on September 19, 2005, subject to the satisfaction of
customary closing conditions. The notes will be convertible into
Midway common stock, at the option of the holders, at a conversion
rate of 56.3253 shares per $1,000 principal amount of the notes,
which is equivalent to an initial conversion price of approximately
$17.75. Holders may require Midway to purchase for cash all or part
of their notes on April 30, 2009, September 30, 2010, September 30,
2015, and September 30, 2020, or upon the occurrence of certain
events, at 100% of the principal amount of the notes plus accrued
and unpaid interest and additional interest, if any, up to, but not
including, the date of purchase. Midway may redeem for cash all or
a portion of the notes at any time on or after October 5, 2010, at
100% of the principal amount of the notes plus accrued and unpaid
interest and additional interest, if any, up to, but not including,
the date of redemption. Offers and sales of the notes will be made
only to qualified institutional buyers in accordance with Rule 144A
under the Securities Act of 1933. This announcement is neither an
offer to sell nor a solicitation of an offer to buy any of these
securities. The notes and the common stock issuable upon conversion
of the notes have not been registered under the Securities Act or
applicable state securities laws. Unless so registered, the notes
and common stock issuable upon conversion of the notes may not be
offered or sold in the United States except pursuant to an
applicable exemption from the registration requirements of the
Securities Act and applicable state securities laws. About Midway
Games Headquartered in Chicago, IL with offices in San Diego, CA,
Seattle, WA, Austin, TX, Los Angeles, CA, Munich, Germany, London,
UK, and Adelaide, AUS, Midway Games Inc. (NYSE:MWY) is a leading
developer and publisher of interactive entertainment software for
major video game systems. More information about Midway can be
obtained at www.midway.com. This press release contains
"forward-looking statements" within the meaning of the federal
securities laws concerning future business conditions and the
outlook for Midway Games Inc. (the "Company") based on currently
available information that involve risks and uncertainties. The
Company's actual results could differ materially from those
anticipated in the forward-looking statements as a result of these
risks and uncertainties, including, without limitation, the
financial strength of the interactive entertainment industry,
dependence on new product introductions and the ability to maintain
the scheduling of such introductions, the upcoming console platform
transition and other technological changes, dependence on major
platform manufacturers, adequacy of capital resources and other
risks more fully described under "Item 1. Business - Risk Factors"
in the Company's Annual Report on Form 10-K for the year ended
December 31, 2004, and in the more recent filings made by the
Company with the Securities and Exchange Commission.
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