For Release: May 15, 1998
Altera Calls for Redemption of Convertible Subordinated Notes
SAN JOSE, Calif. -- May 15, 1998 -- Altera Corporation (Nasdaq: ALTR) has called for redemption on June 16, 1998, the Company's 5-3/4% Convertible Subordinated Notes due 2002 (the "Notes"). The aggregate principal amount outstanding of the Notes is approximately $230 million.
Prior to 5:00 PM, Eastern Daylight Time, on June 15, 1998, holders may convert their Notes into shares of Altera's Common Stock at a price of $25.585 per share, or approximately 39.085 shares of Altera's Common Stock per $1,000 principal amount of Notes. Cash will be paid in lieu of fractional shares. On May 15, 1998, the last reported sale price of the Altera Common Stock on the Nasdaq Stock Market was $39.0625 per share.
Alternatively, holders may have their Notes redeemed at a total redemption price of $1,033.06 per $1,000 principal amount of Notes, consisting of $1,032.90 principal amount plus accrued interest of $0.16. Any Notes not converted on or before 5:00 PM, Eastern Daylight Time, on June 15, 1998, will be automatically redeemed on June 16, 1998, after which interest will cease to accrue. So long as the market price of the Altera Common Stock is at least $26.43 per share, a holder of the Notes who converts will receive Altera Common Stock with a market value (plus cash in lieu of any fractional shares) greater than the amount of cash the holder would otherwise be entitled to receive upon redemption.
A Notice of Redemption is being mailed to all registered holders of the Notes. Copies of the Notice of Redemption may be obtained from State Street Bank and Trust Company by calling Traci Hopkins at (617) 664-5553.
Altera Corporation, founded in 1983, is a world-wide leader in high-performance, high-density programmable logic devices and associated computer aided engineering (CAE) logic development tools. Programmable logic devices are semiconductor chips that offer on-site programmability to customers. The chips are programmed with tools that run on personal computers or engineering workstations. User benefits include ease of use, lower risk, and fast time-to-market. The Company offers the broadest line of CMOS programmable logic devices that address high-speed, high-density, and lower power applications. Altera products serve a broad range of market areas, including telecommunications, data communications, computers, and industrial applications. Altera Common Stock is traded on The Nasdaq Stock Market using the symbol ALTR.
Copies of Altera's announcement are available from its fax-on-demand service. In the U.S. and Canada to request a copy call 1-800-789-ALTR. International users can dial their local International Access Code followed by 1-408-894-0466. More information can be obtained on the World Wide Web at http://www.altera.com.
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