Flextronics holders tender $281.68 million in Dutch auction for 1% convertibles

By Susanna Moon

Chicago, Dec. 30 - Flextronics International Ltd. said investors tendered $281,677,000 of the company's 1% convertible subordinated notes due Aug. 1, 2010 in the offer to purchase up to $250 million of the $499.99 million outstanding notes in a modified Dutch auction tender offer.

The offer expired at midnight ET on Dec. 29.

Flextronics accepted $259,999,000 principal amount of notes at a purchase price of $870 per $1,000 principal amount, set under a modified Dutch auction procedure. Of the $259,999,000 principal amount, $9,999,000 was accepted under the terms that provide for Flextronics to purchase up to an additional 2% of outstanding notes without amending or extending the offer.

Because the amount of notes tendered exceeded the offer amount, Flextronics said it accepted notes on a pro rata basis. As a result, 92.3651% of notes tendered at or below the final purchase price of $870 per $1,000 principal amount were accepted for purchase.

The principal amount of notes that Flextronics accepted for purchase represents 52% of the $499,992,000 principal amount of notes outstanding prior to the expiration of the tender offer.

The company previously said that, for each $1,000 principal amount of convertibles tendered and accepted, the purchase price would be a base price of $780 plus a clearing premium not to exceed $90.

The clearing premium would 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.

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

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.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.