Pegasus Solutions, Inc. announced today that the $75 million in original principal of its 3.875% Convertible Senior Notes due 2023 have been repurchased by the company. The repurchase resulted from the right of holders of such notes to require Pegasus to repurchase them upon a fundamental change. Pegasus repurchased the notes at a purchase price equal to 100 percent of the principal amount at issuance plus interest accrued through June 25, 2006.
The fundamental change in the company that triggered the holders' repurchase right was the completion of the acquisition of Pegasus by an investor group led by Prides Capital Partners, LLC, including entities affiliated with Prides, Tudor Investment Corporation and Belfer Management, as announced on May 4, 2006. Pegasus previously provided holders of such notes with a notice of fundamental change describing the terms under which holders had the right to require Pegasus to repurchase their notes.
About Pegasus Solutions, Inc.
Dallas-based Pegasus Solutions, Inc. is a global leader in providing technology and services to hotels and travel distributors. Founded in 1989, Pegasus' customers include a majority of the world's travel agencies and more than 60,000 hotel properties around the globe. Pegasus' services include central reservation systems, electronic distribution services, commission processing and payment services, and marketing representation services, including the consumer Web site, www.hotelbook.com(TM). The company's representation services, including Utell by Pegasus(TM) and Unirez by Pegasus(TM), are used by more than 7,000 member hotels in 140 countries, making Pegasus the hotel industry's largest third-party marketing and reservations provider. Pegasus has 17 offices in 12 countries, including regional hubs in London, Singapore and Scottsdale, Arizona. For more information, please visit www.pegs.com.
About Prides Capital Partners, LLC
Prides Capital, based in Boston and San Francisco, specializes in strategic block, active investing in small- and micro-cap public and private companies. In partnership with its management teams, Prides seeks to create value through strategic, operational and financial assistance. For more information, please visit http://www.pridescapital.com.
This press release contains "forward-looking statements" under the Private Securities Reform Act of 1995 that involve risks, uncertainties and assumptions. If any of these risks or uncertainties materializes, or if any of these assumptions proves incorrect, the results of Pegasus and its consolidated subsidiaries could differ materially from those expressed or implied by such forward-looking statements.
All statements other than statements of historical fact are statements that could be deemed forward-looking statements.