STMicroelectronics to redeem LYONs with cash

Pittsburgh, Aug. 10 - STMicroelectronics NV said it will use cash rather than stock to fund the upcoming put of its zero-coupon subordinated Liquid Yield Option Notes due Sept. 22, 2009, according to a company news release.

Holders can put their LYONs back to the company beginning Aug. 24 for the original issue price plus accrued original issue discount.

If all the notes are redeemed, STMicroelectronics will pay about $813 million in cash.

Holders may withdraw LYONs previously surrendered for purchase by 5 p.m. ET on Sept. 22.

The LYONs are currently convertible into 26.292 STMicroelectronics common shares per $1,000 principal amount at maturity subject to adjustment under certain circumstances. The release said the LYONs are currently convertible at a price that is substantially higher than the current market price of the company's shares.

The Geneva-based company develops and delivers semiconductor solutions for microelectronics applications.

© 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.