Diceon to Issue New Stock to Cancel Debt

Diceon Electronics Corp., a maker of computer components, struck a deal Tuesday to issue new stock in exchange for the cancellation of debt held by its major bondholder.

Milan Mandaric, chairman of Senses International Inc., a maker of building security systems, will receive about 2.95 million shares of common stock in exchange for canceling $14.7 million in corporate IOUs known as convertible subordinated debentures. He will also be compensated for interest owed him.

Mandaric will become chairman of Diceon, a title formerly held by Pete Jonas, who will remain chief executive. The deal is expected to cut Diceon’s annual interest expense by $800,000.