Getronics accepts tenders for 89.131% of 5.5% convertibles

By Jennifer Chiou

New York, Dec. 22 - Getronics NV said holders of €89.131 million of its €100 million outstanding 5.5% unsubordinated convertible bonds due 2008 tendered their holdings.

The offer expired at 11 a.m. ET on Dec. 19. It began on Dec. 15.

The tender consideration will be €1,037.50 per €1,000.00 principal amount, which was determined using the average of the volume-weighted average price of the ordinary shares of Getronics listed on Eurolist by Euronext Amsterdam NV on Dec. 20 and Dec. 21.

Noteholders will also receive accrued interest up to and including the settlement date, which is expected to be Jan. 15.

Rabo Securities and KBC Financial Products UK Ltd. are the dealer managers for the offer, with Rabo Securities as the tender agent.

Getronics will use the proceeds from its recent issuance of €95 million 3.875% convertible bonds due 2014 to fund the tender offer.

The company said the tender offer and the new convertibles are expected to significantly improve its debt maturity profile, reduce its cost of capital and strengthen its balance sheet.

The transactions are in line with Getronics' goal of optimizing its financing structure and are expected to provide increased financial flexibility for the company's future development, according to the release.

Getronics is an Amsterdam-based provider of vendor independent information and communication technology services.

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