08.221.2005 - Maxtor Corporation Announces Proposed Offering of Convertible Senior Notes due 2012

MILPITAS, CA, August 9, 2005 — Maxtor Corporation (NYSE: MXO) announced today that, subject to market and other conditions, it intends to offer $300 million of Convertible Senior Notes due 2012 to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933. Offers to initial purchasers outside the United States will be made pursuant to Regulation S of the Securities Act of 1933. The Company also intends to grant the initial purchasers a 30-day option to purchase up to an additional $45 million aggregate principal amount of the notes to cover over-allotments. These notes will be convertible into the Company's common stock under certain circumstances at a price to be determined, and on conversion of these notes the Company will pay cash equal to the principal amount (or if less, the conversion value), and if the conversion value is greater than the principal amount, the Company will have the option to pay the excess in either cash or common stock. - View Press Release - Visit Maxtor Corporation