DULUTH,ARRIS, a provider of integrated broadband equipment, said Tuesday it is seeking to issue $100 million in notes that would come due in 2008.
ARRIS (Nasdaq: ARRS) said the funds to buy out, at a discount, holdings in the company currently held by Nortel Networks. Nortel holds a “membership” interest in the company it helped found worth $117.3 million, but ARRIS can redeem that membership holding for $86.7 million if the deal is executed before March 31.
Nortel also is offering ARRIS a 10 percent of the prevailing market price if it buys 16 million of the 22 million shares Nortel owns. ARRIS stock closed Tuesday at $4.49 a share, down 8 cents.
ARRIS generated $651.9 million in revenues in 2002 and lost $191.2 million, or $2.33 a share.