Kimball Electronics plans tender for Reptron senior notes due 2009

By Jennifer Chiou

New York, Dec. 19 - Kimball Electronics Group announced it will begin a cash tender offer for all of Reptron Electronics, Inc.'s senior secured notes due 2009 on Dec. 22.

The completed offer is necessary for Kimball's acquisition of Reptron for $0.68 per share, which represents a premium of 28% to Reptron's three-month volume-weighted average stock price of $0.53.

The company will tender for the notes at a 12.5% discount to par.

The company will also solicit consents to amend the note indenture and will need consents from at least 97% of noteholders.

Reptron added that it has executed support agreements with holders of more than 80% of the notes.

Tampa, Fla.-based Reptron, an electronics manufacturing services company, noted it will solicit shareholder approval via proxy statement.

Based in Jasper, Ind., Kimball is a global contract electronics manufacturing services company that specializes in durable electronics for the automotive, medical, industrial and public safety markets.

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