READ-RITE completes $100 million debt financing transaction

Business Wire, Oct 3, 1995

MILPITAS, Calif.--(BUSINESS WIRE)--Oct. 3, 1995--READ-RITE Corp. (NASDAQ:RDRT) today announced that it has completed $100 million in debt financing from a group consisting of four major insurance companies.

The five-year financing will carry a fixed interest rate of 7.53 percent.

In conjunction with this transaction, READ-RITE received an investment grade rating of BBB- (triple B minus) from Duff & Phelps Credit Rating Co. The financing was arranged by Canadian Imperial Bank of Commerce.

"Our ability to obtain an investment grade rating and to receive funding from this prestigious group of lenders is a major milestone in the company's history," said Cyril J. Yansouni, READ-RITE's chairman and chief executive officer. "This action is part of our overall strategy to enhance our already strong balance sheet. It will also enable us to continue to respond to increasing unit demand for READ-RITE's products, as well as to continue to invest in new technologies," he stated. Yansouni also indicated that the timing of the $100 million debt transaction allowed the company to take advantage of the current favorable interest rates.

READ-RITE is the leading independent manufacturer of heads and headstack assemblies for disk drives and magnetoresistive heads for quarter-inch-cartridge tape drives. Headquartered in Milpitas, the company reported sales of $714 million, net income of $76.9 million and earnings per share of $1.63 for the nine months ended June 30, 1995.

CONTACT: READ-RITE Corp.

Steve Polcyn or Lori Holland, 408/956-2217

or 408/956-2135