September 4, 2009 (FinancialWire) — Magma(r) Design Automation Inc. (NASDAQ: LAVA) announced it has established the conversion price for the 6.0% convertible senior notes due 2014 to be issued in exchange for Magma’s outstanding 2.0% convertible senior notes due May 15, 2010 in its exchange offer.

Pursuant to the terms of its exchange offer, the conversion price will be equal to the greater of (1) $1.80 per share and (2) 120 percent of the arithmetic average of the daily volume-weighted average price of Magma’s common stock for the five trading days ended Sept. 2, 2009 (the “5 Day VWAP). The 5 Day VWAP for the period ended Sept. 2, 2009 is equal to $1.4354. Since 120 percent of the 5 Day VWAP equals $1.72, and is therefore less than $1.80 per share, the conversion price for the exchange notes in the exchange offer will be $1.80 per share.

The exchange offer is scheduled to expire at midnight EDT on Friday Sept. 4, 2009, unless extended.

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