Growth-Minded AST Research Plans Bond Sale to Raise Capital : Computers: PC maker, which is adding a third shift at its Fountain Valley plant to keep up with demand, hopes to increase production capacity.

Hoping to churn out personal computers faster, AST Research Inc. said Thursday that it plans to issue bonds so that it can raise about $100 million for working capital and possibly add to its factory capacity.

Safi Qureshey, chief executive, said recently that the company’s plant in Fountain Valley is hiring several hundred employees so that it can keep up with demand. Meanwhile, the company’s competitors in the industry continue to lay off employees.

The company has been able to post continued profits in a vicious industry price war by continually expanding its sales of personal computers. But it is running out of space at its Orange County factory, where the company is adding a third shift of employees, and it has planned for some time to construct a plant in Europe.

“They will be creating a war chest, but it’s not clear why they need it,” said Ian Gilson, analyst at L.H. Friend, Weinress & Frankson, an investment bank in Irvine.

AST said in a filing with the Securities and Exchange Commission that it will sell the notes. AST stock closed at $18.375 a share, down 75 cents, in NASDAQ trading Thursday.

The zero-coupon subordinated notes will be offered at a discount of face value. The notes, with a total face value of $275 million, will not offer periodic interest payments but can be redeemed for the full value upon maturing in the year 2013.

Investors will have the ability to convert the notes into common stock, although AST can substitute cash payments equal to the value of such shares upon conversion. The conversion rate will be made available in a later filing.

Merrill Lynch & Co. will underwrite the securities sale.