Kemet prolongs tender offer for its $175 million 2.25% convertibles

By Jennifer Chiou

New York, June 3 - Kemet Corp. announced the extension of the tender offer for its $175 million of 2.25% convertible senior notes due 2026 to 11:59 p.m. ET on June 12 from June 2.

As of 5 p.m. ET on June 2, holders had tendered $2,712,000 of the 2.25% notes.

Holders will receive $300 for each $1,000 principal amount of tendered notes plus accrued interest to the payment date.

The company previously said it will finance the offer with a term loan of up to $52.5 million under a credit facility with K Financing, LLC, an affiliate of Platinum Equity Capital Partners II, LP.

The tender offer is conditioned on tenders of at least $166.25 million principal amount, or 95%, of the notes and a term loan of up to $52.5 million from K Financing.

In connection with the tender offer, Kemet said it entered into certain amendments to its €60 million credit facility and €35 million credit line, each with UniCredit Corporate Banking SpA. The amendments are to become effective on completion of the tender prior to July 20.

Deutsche Bank Securities Inc. (800 503-4611) is the dealer manager. D.F. King & Co. (800 431-9643 or 212 269-5550) is the information agent and depositary.

Kemet is a Simpsonville, S.C.-based manufacturer of tantalum, multilayer ceramic, film, electrolytic paper and solid aluminum capacitors.

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