IRVINE — AST Research Inc. will use $97.5 million raised through the sale of securities for working capital, to pay off bank debt and for new product development, the company said Tuesday.
In a press release, the Irvine company said it had sold zero-coupon subordinated securities with a principal amount at maturity of $275 million. The securities carry a 5.25% yield to maturity and are due Dec. 14, 2013.
AST recently reported record sales of $1.4 billion for the fiscal year ended July 3. This summer it acquired Tandy Corp.'s personal computer operations for $105 million, and expects 1994 fiscal-year revenue to top $2 billion.
In November, AST, the nation's fourth-largest computer manufacturer, announced that it would lay off 650 employees in Orange County and create additional jobs in Texas and Ireland as part of a cost-cutting drive prompted by ongoing computer price wars.