12.350.2004 - Gateway to Offer $250 Million of Convertible Senior Notes

IRVINE, Calif., Dec. 15 /PRNewswire-FirstCall/ -- Gateway, Inc. (NYSE: GTW) today announced that it is selling two series of convertible senior notes for an aggregate principal amount of $250 million. One series will mature in 2009 and the other in 2011. The notes will bear interest and will be convertible into shares of Gateway's common stock at a rate and price to be determined on Dec. 16, 2004. Gateway expects to grant the initial purchasers of the notes an option to purchase up to an additional $25 million aggregate principal amount of the notes. Upon the occurrence of certain designated events, holders will have the right to require Gateway to repurchase the notes at a price equal to 100 percent of their principal amount. Should certain transactions that constitute a fundamental change in Gateway occur, under certain circumstances the conversion rate for the notes will be increased. - View Press Release - Visit Gateway, Inc.