Flextronics tenders for up to $100 million each of 6½%, 6¼% notes

By Jennifer Chiou

New York, May 29 - Flextronics International Ltd. announced the start of a cash tender offer to purchase up to $100 million each of its $399,622,000 of 6½% senior subordinated notes due May 15, 2013 and its $402.09 million of 6¼% senior subordinated notes due 2014.

The offer ends at midnight ET on June 25.

The company said it is also soliciting consents to make amendments to the indentures, including:

• Restarting, as of April 1, the calculation period for determining its restricted payments capacity;

• Excluding certain non-cash charges from the calculation of cumulative consolidated net income for purposes of calculating the restricted payments capacity;

• Permitting Flextronics to redeem, repurchase, retire or otherwise acquire any portion or all of its outstanding 1% convertible subordinated notes due Aug. 1, 2010; and

• Permitting the company and its restricted subsidiaries to make additional restricted payments of up to $500 million in addition to any other permitted restricted payments.

The consent deadline is 5 p.m. ET on June 11.

For each $1,000 principal amount, the company said it will pay $960 for the 6½% notes and $910 for the 6¼% notes, both payouts including a $30.00 consent fee for those who tender by the early deadline.

The company is seeking consents from holders of a majority of each of the notes series.

Tenders in excess of $100 million for each series will result in proration.

Flextronics is a Singapore-based company that provides manufacturing services to electronics companies.

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