Conexant announces tender offer for $73 million of its floaters

By Angela McDaniels

Tacoma, Wash., Aug. 24 - Conexant Systems, Inc. is beginning a tender offer for $73 million of its floating-rate senior secured notes due in November 2010, according to a company news release.

The details of the offer were not included in the release.

Outside of the tender offer, the company plans to purchase an additional $7 million of the notes.

Conexant said that if it decreases the outstanding principal amount of notes by $80 million, its interest payments will be reduced by more than $5 million per year.

The repurchases will be funded with a combination of proceeds from the recently completed sale of the company's broadband access product lines to Ikanos Communications, Inc., other completed transactions and cash from the balance sheet.

According to the company's latest 10-Q report, there was $141.4 million principal amount of notes outstanding as of July 3.

Conexant is a fabless semiconductor company based in Newport Beach, Calif.

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