SYKES DATATRONICS <SYKE.O> SELLS DEBENTURES
Sykes Datatronics Inc said it
has agreed in principle for Marshall Associates and H and M
resources Inc to each purchase up to one mln dlrs of its
convertible debentures, allowing Sykes to pay in full its debt
to Chase Manhattan Corp <CMB> and Chemical New York Corp <CHL>.
    The company said at closing, each investor will buy 750,000
dlrs of convertible debentures bearing interest at three points
over the prime rate.  It said interest only is payable until
June 1, 1990, when repayment of principal in 20 quarterly
installments.
    Sykes said the remaining 250,000 dlrs of each commitment
may be drawn down at Sykes' option after December 1, 1987 if
the company has met certain performance levels.
    It said the debentures are convertible into common stock at
15 cts per share.  It said if it has now drawn all of the
remaining 500,000 dlrs of debentures, the investor can buy
whatever amount of debentures remain unsold and immediately
convert  them to Sykes stock.
    Sykes said if both investors were to convert all of the
debentures, they would own 13.3 mln Sykes shares.  Sykes now
has 13.0 mln shares outstanding.
    Sykes said, however, that the agreement with the investors
provides that the number of shares resulting from the
conversion of the debentures may not be in an amount that would
limit Sykes' ability to use its net operating loss carryforward
under the Tax Reform Act of 1986.  The provisioin would
prevcent the investor from owning more than 50 pct of Sykes'
shares immediately after conversion, it said.
    The company said closing of the trasaction is expected
before July 1, subject to the receipt of a fairness opinion
from an investment banker, Moseley Holdings Corp <MOSE.O>.
    Sykes said it will use 1,100,000 dlrs of the initial
1,500,000 dlrs in proceeds, together with a 200,000 dlr note,
to pay in full all its debt to Chase and Chemical.  The banks
will then release their security interests in sykes assets,
which will be pledged to the two new investors instead, it
said.
    Sykes said on payment to the banks, it will no longer have
to pay to the banks lease payments and proceeds from the sale
of excess inventory and assets.
 Reuter
