September 10, 2009 (FinancialWire) — Magma(r) Design Automation, Inc. (NASDAQ: LAVA) announced the preliminary results of its offer to exchange up to $49,939,000 aggregate principal amount of its 6.0% convertible senior notes, due 2014 for any and all of the $49,939,000 aggregate principal amount of its currently outstanding 2.0% convertible senior notes due May 15, 2010, which expired at midnight EDT on Friday Sept. 4, 2009.

In accordance with the terms and conditions of the Exchange Offer, and based on the preliminary count by U.S. Bank National Association, the exchange agent for the Exchange Offer, the company expects to accept for exchange approximately $26.7 million aggregate principal amount of the Existing notes for the previously announced exchange consideration of $1,000 principal amount of Exchange notes per $1,000 principal amount of Existing notes validly tendered and not withdrawn in the Exchange Offer.

“We are pleased that a majority of the bondholders responded positively to the exchange offer, the result of which substantially improves Magma’s balance sheet,” said Magma chief financial officer Peter S. Teshima. “With $63 million in cash and short-term investments we believe we have sufficient resources to retire at maturity the balance of the notes not tendered with cash on hand or generated from operations. A number of external financing mechanisms also remain available for us to utilize toward note repurchase or toward strengthening our product portfolio, should those financing alternatives prove sufficiently attractive. In any case, our improved balance sheet and return to profitability over the last 2 quarters allows us to keep our focus on delivering technology to the marketplace.”

The aggregate principal amount of Existing notes to be exchanged by Magma is preliminary. The determination of the final aggregate principal amount of Existing notes to be exchanged is subject to confirmation by the exchange agent of the proper delivery of the Existing notes validly tendered and not properly withdrawn. The actual aggregate principal amount of Existing notes validly tendered and not properly withdrawn will be announced following the completion of the confirmation process. Payment for the notes accepted for purchase will occur promptly thereafter.

Magma expects that the settlement date for the Exchange Offer will be Thursday, Sept. 10, 2009. Accrued and unpaid interest to, but excluding, the settlement date on Existing notes accepted in the Exchange Offer will be paid in cash.

FinancialWire(tm) is a fully independent, proprietary news wire service. FinancialWire(tm) is not a press release service, and receives no compensation for its news, opinions or distributions. Further disclosure is at the FinancialWire(tm) web site (http://www.financialwire.net/disclosures.php). Contact FinancialWire(tm) directly via inquiries@financialwire.net.

Free annual reports for companies mentioned in the news are available through the Free Annual Reports Service (http://investrend.ar.wilink.com/?level=279).

Legal Disclaimer:

EIN Presswire provides this news content "as is" without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the author above.