Convertible Notes

12 Months Ended

Dec. 31, 2013

Convertible Subordinated Debt [Abstract]

Convertible Notes

CONVERTIBLE NOTES

2.875% Convertible Subordinated Notes

On May 19, 2006, we issued $115.0 million aggregate principal amount of convertible subordinated notes with an interest rate of 2.875%, payable semi-annually. The notes were due on June 1, 2013, and were subordinated to all previously existing and future senior indebtedness, and effectively subordinated to all indebtedness and other liabilities of our subsidiaries. The cost of this transaction, including underwriting discounts and commissions and offering expenses, totaled $3.1 million and was recorded on our balance sheet in other long-term assets and amortized over the life of the notes. The amortization of these costs totals $0.1 million per quarter and is reflected as additional interest expense in our Consolidated Statements of Operations through the date of conversion.

Prior to conversion, we redeemed the following amounts of our 2.875% Convertible Subordinated Notes:

Date	Amount Redeemed		Redemption Price		Redemption Discount		Related Note Issuance Costs Written Off
February 2009	$	15,000,000	86.50	%	$	2,025,000	$	250,154
June 24, 2010	7,940,000		98.90		89,325		90,904
June 29, 2010	1,200,000		99.00		12,000		13,703
July 8, 2010	1,848,000		99.25		13,860		20,546
Total for 2010	10,988,000				115,185		125,153
Total	$	25,988,000			$	2,140,185	$	375,307

Additionally, during 2012, one of our note holders converted a $1,000 note into 34 shares of FEI common stock and in 2011, one of our note holders converted a $1,000 note into 34 shares of FEI common stock.

Debt Conversion

On June 1, 2013, the remaining $89.0 million of these notes were due. Prior to maturity, holders of $88.9 million of these notes converted their notes into 3.0 million shares of FEI common stock. At maturity, holders of $0.1 million of these notes did not elect to convert into FEI common stock and those notes were settled with a cash payment.