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Entegris begins Dutch auction tender offer for 15% of common stock
By Lisa Kerner
Charlotte, N.C., May 10 - Entegris, Inc. will begin a modified Dutch auction tender offer on May 11 to purchase up to 20.4 million shares, or about 15%, of its common stock priced between $11.00 and $12.25 per share, for a maximum total purchase price of up to $250 million.
The tender offer is expected to expire at 11:59 p.m. ET on June 8.
Entegris plans to fund the offer with $175 million from available cash on hand and with the proceeds from a $75 million bridge loan. The company said it intends to refinance the bridge loan with debt securities, convertible debt securities or a bank loan.
"The magnitude and nature of this share repurchase, which follows a $100 million buyback we completed in October 2006, reflects our confidence in Entegris' future," chief executive officer Gideon Argov said in a company news release.
"We believe that this recapitalization will result in a capital structure that can leverage our business model and will allow us to use our strong financial position and cash flow to build long-term shareholder value."
Goldman, Sachs & Co. and Citigroup Global Markets Inc. will serve as dealer managers for the stock tender offer. MacKenzie Partners, Inc. will serve as information agent, and Wells Fargo Bank, NA will serve as the depositary.
In August 2006, Entegris announced a $150 million share repurchase authorization, of which $100 million was executed in September and October of 2006 in an accelerated stock buyback program. About $50 million of the August 2006 authorization is expected to remain following the completion of the stock tender offer.
Minneapolis-based Entegris specializes in materials integrity management for the semiconductor and other high-tech industries.
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