Flextronics tenders for 9¾% euro notes

New York, March 1 - Flextronics International Ltd. said it has begun a cash tender offer for any and all of its €150 million 9¾% senior subordinated notes due 2010.

The Singapore-based electronics manufacturing services company is also soliciting consents to eliminate some of the notes' restrictive covenants.

For each €1,000 principal amount of the notes, Flextronics is offering the present value on the initial settlement date of €1,048.75, the redemption price on the first call date of July 1, 2005, plus all scheduled interest payments to the first call date, discounted using the yield to maturity on the 6 7/8% German Bund due May 12, 2005 plus 25 basis points plus accrued interest from the last interest payment up to but excluding the settlement date. The reference yield will be set at 10 a.m. ET on the 10th business day before the expiration.

The total amount calculated using the formula includes a €10.00 per €1,000 consent payment that will only be paid to holders who tender by the consent date of 11:59 p.m. ET on March 14. The offer expires at 11:59 p.m. ET on March 28.

Holders who tender by the consent date will be considered to have submitted consents. Tenders may not be made before that deadline without also giving consents.

Financing for the tender will come from cash on hand.

Citigroup Global Markets Ltd. is dealer manager and solicitation agent (call Liability Management Group collect at 44 207-986-8969). Citibank, NA is information (44 207-508-3867), and Dexia Banque Internationale a Luxembourg is the Luxembourg information agent (352 4590-4214).

© 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.