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REGIONAL ROUNDUP

Black Box Hopes to Raise $98 Million With Offerings

July 17, 1990

Black Box Inc. in Simi Valley said it plans to raise about $98 million with an initial public offering of 4.5 million common shares and an offering of $35 million in subordinated debentures, a type of debt security.

Black Box is the parent company of Micom Communications, which makes devices that enable computers to share information, and Black Box Corp., a mail-order business for data communications products. Black Box Inc. was taken private as part of a $334-million leveraged buyout of the former Micom Systems in 1988 by the New York investment firm Odyssey Partners.

The company plans to use the proposed offerings' proceeds to help fund a recapitalization plan, which includes buying back a portion of the company's existing debt, according to a company filing with the Securities and Exchange Commission.

The common shares registered with the SEC would represent about 58% of Black Box's stock after the offering, and are expected to sell for between $12 and $14 a share, the filing said.

Black Box also said its private exchange offer for $110 million of subordinated debt ended Wednesday. It said $100 million, or about 91% of the notes offered, were exchanged.

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