This excerpt taken from the EYE 8-K filed Aug 1, 2006.
Major Second-Quarter Financial Developments
During the second quarter, the company:
· Issued $500 million aggregate principal amount of 3.25 percent convertible subordinated notes due 2026 with an initial conversion price of $59.61. AMO used the proceeds to purchase 10.1 million shares of its common stock. The company also used borrowings under its senior revolver to purchase $128.9 million aggregate principal amount of its outstanding convertible notes through privately negotiated repurchases. The transactions were designed primarily to return capital to stockholders and create a more efficient capital structure.
· Settled all pending patent infringement lawsuits with Alcon, Inc. Under the agreement, Alcon paid AMO in July 2006 a lump sum of $121 million. AMO will recognize the Alcon payment in the third quarter of 2006. The settlement resolved four separate lawsuits between the two companies and provided global cross-licensing rights on existing phacoemulsification products and the use of multiple viscoelastics in a single ophthalmic procedure. The company used the majority of the proceeds to pay down its senior revolver.