Kemet completes oversubscribed tender offer for 2.25% convertibles

By Susanna Moon

Chicago, May 18 - Kemet Corp. said it accepted for purchase $40.5 million of its 2.25% convertible senior notes due 2026 on May 18.

Investors had tendered $57.48 million, or 71%, of the $81.08 million outstanding convertibles as of 11:59 p.m. ET on May 17, the expiration date, in the offer for up to $40.5 million of the notes.

Kemet said it accepted notes on a pro rated basis because the amount of tendered notes exceeded the maximum allowed under the offer.

As previously noted, holders will receive $935 for each $1,000 principal amount of convertibles plus interest to, but excluding, the payment date.

The tender offer was conditioned upon the completion of a concurrent $225 million debt financing. Kemet sold $230 million of 10½% eight-year notes on May 5 at 98.685 to yield 10¾%.

Bank of America Merrill Lynch (888 292-0070) is the dealer manager. D.F. King & Co., Inc. (212 269-5550 or, toll free, 800 714-3312) is the information agent and depositary agent.

In February, the company began a tender offer for up to $56.08 million of the convertibles, offering $965 for each $1,000 in securities, but canceled the offer a week later as a result of unfavorable market conditions.

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

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