Aspocomp Group to start tender offer for convertibles in June

Company to offer 66.7% of par for €3.17 million of convertibles

By Jennifer Chiou

New York, May 24 - Aspocomp Group plc plans to hold a cash tender offer for its convertible bonds in conjunction with a redemption agreement reached with the holders of a majority of the bonds.

The offer is expected to begin June 1 and end June 22.

The transactions are being made in connection with Aspocomp signing of a letter of intent on May 4 with TTM Technologies, Inc., under which TTM will pay €14.5 million as the final payment for receivables from the 2007 sale of Aspocomp's subsidiary. The receivables are related to Aspocomp's remaining 20% stake in Meadville Aspocomp (BVI) Holdings Ltd.

According to a news release, the companies agreed on a call and put option, and Aspocomp and the holders of 69.2% of the convertibles agreed to the redemption of the securities, conditioned on the completion of the TTM transaction.

The company said that the total nominal value of the bonds is €10.3 million. Subject to the completion of the TTM transaction, Aspocomp will use the proceeds in addition to cash on hand to purchase 69.2% of the bonds and repay debt to its bank lenders.

This leaves €3.17 million of the bonds affected by the tender offer, which has a purchase price of €667 per €1,000 principal amount. The consideration corresponds to the amount to be received by holders who have signed the redemption agreement.

Tendering holders will also receive an amount of interest equivalent to 2.1% per year from the date the holders who signed the redemption agreement receive payment to the settlement date for the tender offer. Regular accrued interest on the convertibles will not be paid.

The transactions are expected to be completed by June 30. The end of the tender offer will fall no earlier than 10 days from the completion of the TTM transaction.

The bonds were issued on Dec. 1, 2006.

Evli Bank plc is the arranger of the tender offer. Questions may be directed to Aspocomp chief executive officer Sami Holopainen (358 9 59 181).

The Espoo, Finland-based company provides services for the design and manufacture of high-tech PCBs.

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