Photronics expects $85.2M from stock and note sale

Photronics to raise $85.2 million in stock and note offering; will pay down bank debt

• On 11:57 am EDT, Friday September 11, 2009

BROOKFIELD, Conn. (AP) -- Electronic imaging technology supplier Photronics Inc. said on Friday it has priced a convertible note and stock offering, and expects to raise $85.2 million.

Photronics said it will sell 9.6 million shares for $4.15 each in a public offering. Underwriters have an option to buy another 1.4 million shares.

Photronics also said it has priced an offering of $50 million in unsecured convertible notes due Oct. 1, 2014. Underwriters have an option for another $7.5 million in notes. The notes pay interest semiannually at a 5.5 percent annual rate.

Photronics said it will use the money to pay back some of its bank debt. Both the stock and note offerings are expected to close on Wednesday.

Photronics shares rose 21 cents, or 5 percent, to $4.38 in midday trading.