Terminal Data Debt Holders Convert Securities

Terminal Data Corp. said holders of its debt converted those securities to new debt under an exchange offer that is expected to save the Moorpark-based company nearly $1.5 million over the next seven years.

The company, which makes document scanners and other imaging equipment, said holders of $3.56 million, or 80%, of its Class A 11.25% convertible subordinated debentures, due in 2001, converted the securities to Class B debentures that have the same interest rate and maturity.

However, the Class B debentures contain different terms, such as their conversion price to Terminal Data’s common stock, which should improve the company’s cash position in upcoming years, Terminal Data said.

Convertible subordinated debentures are a form of corporate debt that are convertible into common stock and subordinate to other debt in terms of having a claim on the company’s assets.

In the nine months that ended June 30, Terminal Data lost $1.79 million on sales of $16.2 million.