Bell Microproducts solicits consents to amend 3¾% convertibles

New York, Dec. 7 - Bell Microproducts Inc. announced it has begun soliciting consents from holders of its $110 million of 3¾% convertible subordinated notes due 2024 to waive any default or event of default relating to reporting requirements in the note indenture.

The San Jose, Calif., distributor of high-tech products is also looking to amend the indenture to eliminate any provision that would trigger a default or event of default for failing to deliver reports required to be filed with the Securities and Exchange Commission or the trustee.

Consents are needed from holders of a majority of the notes. The changes will become effective on receipt of the necessary consents.

Bell is offering a fee of $5.00 per $1,000 principal amount.

The solicitation ends at 5 p.m. ET on Dec. 13.

In addition, if Bell does not begin before Feb. 28, 2007 a tender offer for the notes at a price of at least par plus accrued and interest, the company will pay consenting noteholders an additional fee of $50.00 per $1,000 principal amount.

The solicitation is the result of Bell's previously announced delay in filing its 10-Q quarterly report for the period ended Sept. 30 with the SEC. Bell has also said it plans to file an amended 10-K for the year ended Dec. 31, 2005 and amended 10-Qs for the quarters ended March 31, 2006 and June 30, 2006. Results are being restated due to accounting errors.

Credit Suisse Securities (USA) LLC is solicitation agent (212 538 3953). Global Bondholder Services Corp. is information agent for the consent solicitation (866 736-2200 or 212 430-3774).

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