Accuray Prices Offering of $100 Million 3.75% Convertible Senior Notes

Accuray Incorporated ARAY today announced the pricing of its offering of $100 million aggregate principal amount of 3.75% convertible senior notes due 2016. The size of the offering was upsized from the previously announced $75 million offering. The notes were offered and sold to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended. The sale is expected to close August 1, 2011. Accuray has also granted to the initial purchaser of the notes the right to purchase up to an additional $15 million aggregate principal amount of notes. Interest will be payable on the notes semi-annually in arrears at a rate of 3.75% per annum. The notes will be convertible under certain conditions into common stock of Accuray, cash or a combination thereof, at Accuray's election. The initial conversion rate for the notes will be 105.5548 shares of common stock per $1,000 principal amount of the notes, which is equivalent to an initial conversion price of approximately $9.47 per share, representing an approximately 25% conversion premium based on the closing sale price of Accuray's common stock of $7.579 per share on July 26, 2011. The notes will mature on August 1, 2016.