Powerwave Plans Common Stock Issue

Powerwave Technologies Inc. plans to sell 2 million shares of common stock to help reduce debt stemming from its acquisition of Hewlett-Packard Co.’s radio frequency power amplifier business, according to a report filed Tuesday with the Securities and Exchange Commission.

The Irvine company, which makes power amplifiers for wireless communications, expects to raise $50.2 million after expenses, assuming a share price of $26.75.

Powerwave will use about $22.5 million of these funds to reduce debt stemming from its acquisition of the Hewlett-Packard unit for about $65.9 million.

The remaining proceeds are earmarked for general corporate purposes, including working capital and the expansion of sales and marketing activities. The company also may use some of the money for acquisitions.

The stock sale will increase the number of Powerwave shares outstanding by 11.5% to 19.46 million, according to the registration statement filed with the SEC. Powerwave shares closed Tuesday at $26, off 75 cents, in Nasdaq trading.

Underwriters for the stock sale will include BT Alex. Brown; Dain Rauscher Wessels; Donaldson, Lufkin & Jenrette; and Warburg Dillon Read LLC.