Flextronics begins Dutch auction tender offer for 1% convertibles

By Angela McDaniels

Tacoma, Wash., Dec. 1 - Flextronics International Ltd. said it began an offer to purchase up to $250 million of its $499.99 million outstanding 1% convertible subordinated notes due Aug. 1, 2010 in a modified Dutch auction tender offer.

For each $1,000 principal amount of convertibles tendered and accepted, the purchase price will be equal to a base price of $780 plus a clearing premium not to exceed $90.

The clearing premium will be the lowest single premium at which Flextronics can purchase the maximum acceptance amount by accepting convertibles with bid premiums equal to or lower than the clearing premium, according to a company news release.

If the total amount of convertibles tendered at or below the clearing premium would cause Flextronics to purchase more than $250 million of convertibles, then the convertibles accepted will be subject to proration.

Flextronics will also pay accrued interest up to but excluding the date on which the tender offer payment is delivered to the depositary.

The offer expiration is midnight ET on Dec. 29.

The tender offer is not conditioned on financing or on any minimum amount of convertibles being tendered, but it is subject to the satisfaction of some customary conditions.

Citi (800 558-3745 or 212 723-6106) is the dealer manager, Georgeson Inc. (212 440-9800 for banks and brokers only or 800 843-9819) is the information agent, and Computershare Trust Co., NA is the depositary.

Flextronics is an electronics manufacturing services provider based in Singapore.

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