Microsemi Corp. to Offer $30 Million in Debentures

Microsemi Corp., a Santa Ana maker of computer chips, said it plans to sell $30 million worth of convertible subordinated debentures due in 2012.

The company is the second mid-size electronics maker in Orange County in a week to announce plans for a multimillion-dollar debt offering. Analysts said small and mid-size high-technology companies throughout the nation are taking advantage of both the continuing low-interest rates and the current surge in stock prices of high-technology companies.

Earlier, Diceon Electronics Inc. of Irvine announced plans to sell $32 million in debentures.

Because small high-technology companies typically do not pay dividends, analysts say debentures which can be converted later to stock are especially attractive to investors when high-technology stocks are doing well in the market. Debentures are an attractive way for companies to raise cash when interest rates are relatively low since the amount they pay investors is reduced.

Microsemi officials said the interest rate on their offering has not yet been set.