Newport Retires Notes Early
To avoid cash interest payments, Newport Corp. of Irvine, Calif., retired $69.6 million of its 2.5% convertible subordinated notes due Feb. 15, 2012, for a sum of $70 million plus accrued interest. The action will save the company $900,000 over the remaining terms of the notes. The savings stem from the amount the notes would accrue during their maturity between Dec. 6, 2011 and Feb. 15, 2012. The principal amount of the convertible notes that will remain outstanding is $51 million. The company expects to generate revenue from operating activities and to capitalize on new opportunities to effectively use its cash.