March 22, 2007 – Wafer prober supplier Electroglas Inc. says it has entered into definitive agreements for private placement of $25.75 million of its 6.25% convertible senior subordinated secure notes due 2027. Net proceeds will be used to pay off $8.5 million in bonds outstanding which are due in June, with the rest going toward general corporate purposes, including working capital and capital expenditures.

Upon issuance, the notes can be converted into EGLS common stock at any time before March 26, 2027; if fully converted, they would become approximately 11.22 million shares of common stock. They are fully redeemable after March 26, 2010 at 100% of the principal amount plus interest.