Flextronics prolongs early deadline in tenders for 6½%, 6¼% notes

By Jennifer Chiou

New York, June 12 - Flextronics International Ltd. announced the extension of the early deadline in the 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 consent deadline is now 5 p.m. ET on June 16, pushed back from June 11.

The offer ends at midnight ET on June 25. It began on May 29.

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.

For each $1,000 principal amount, the company said it will pay par for the 6½% notes and $950 for the 6¼% notes, both payouts including a $30.00 early tender premium and $10.00 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.

U.S. Bank NA is the information agent (800 934-6802, #7, #7 or call collect 651 495-4738). The dealer managers are Credit Suisse Securities (USA) LLC (212 538-1861 or 800 820-1653) and Deutsche Bank Securities Inc. (212 250-6008 or 866 627-0391).

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

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