Accuray (NSDQ:ARAY) said yesterday it made an irrevocable net share settlement election for its 3.5% Series A convertible senior notes due February 1, 2018, looking to pay cash up to $1,000 for each $1,000 principal amount of Series A notes converted alongside delivery of shares for the conversion value in excess of $1,000.
The Sunnyvale, Calif.-based company said that any such notes converted today or afterwards will be determined based on a volume-weighted average price of its common stock over a 15 business day period beginning January 8, estimating an approximate $26.6 million aggregate principal amount as of Dec. 31, according to an SEC filing.
Currently, the conversion rate for such notes is currently roughly 187.7 shares per $1,000 principal amount of such notes, with a conversion price of approximately $5.33 per share.
The company said it is funding the buyback with a $40 million term loan with MidCap Financial Trust, according to an SEC filing.
Accuray originally announced plans for the buyback last month.
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