Sanmina-SCI sets pricing, gets required consents in tender for 10 3/8% notes due 2010

By Jennifer Chiou

New York, Feb. 14 - Sanmina-SCI Corp. announced it set pricing in its cash tender offer for any and all of its $750 million of 10 3/8% senior secured notes due 2010.

The company also said it received the required consents in its consent solicitation to amend the notes' indenture to eliminate all of the restrictive covenants and events of default.

By the consent deadline of 5 p.m. ET on Feb. 13, the company said it received tenders from holders of $721.5 million or 96.2% of the notes.

For each $1,000 principal amount of notes, the company said it will pay $1,094.52, which includes a $30.00 consent payment for those who tender their securities before the consent deadline.

The payout is an amount based on the present value of $1,051.88 - the amount payable on Jan. 15, 2007, the notes' first call date - discounted using the yield to maturity of the 3% Treasury due Dec. 31 and 50 basis points.

The reference yield was 4.765% and the tender offer yield was 5.265%.

Pricing was set at 2 p.m. ET on Feb. 13.

The offer expires at 5 p.m. ET on Feb. 28, unless extended.

The offer is conditioned upon sufficient financing and consents from holders of a majority of the notes.

The company said it would execute a supplemental indenture on Feb. 14.

D. F. King and Co., Inc. is the depositary and information agent (call collect 212 269-5550 or 800 659-5550). Banc of America Securities LLC is the dealer manager and solicitation agent (call collect 704 388-9217 or 888 292-0070).

Banc of America Securities, Citigroup Global Markets Inc. and Deutsche Bank Securities Inc. are joint book-running managers.

Sanmina-SCI started the offer on Jan. 31.

The San Jose, Calif., contract electronics manufacturer said it will use the proceeds from an offering of $600 million of 8 1/8% senior subordinated notes due 2016 and about $250 million of cash on hand to finance the offer.

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