New Issue: Solectron sells $450 million convertible at 0.5%, up 43%

Nashville, Feb. 10 - Solectron Corp. sold $450 million of 30-year convertibles at par to yield 0.5% with a 43% initial conversion premium via joint bookrunners Morgan Stanley & Co., Goldman Sachs & Co. and JPMorgan Securities.

The Rule 144A deal priced at the aggressive end of price talk for a yield of 0.5% to 1.0% with a 38% to 43% initial conversion premium.

Holders will have full dividend protection.

Solectron plans to use proceeds to repurchase and repay outstanding unsubordinated debt, including the possibility of the May 2004 put on its 0% convertible, an estimated $953 million obligation.

Terms of the deal are:

Issuer:	Solectron Corp.
Bookrunners:	Morgan Stanley & Co., Goldman Sachs & Co. and JPMorgan Securities
Amount:	$450 million
Greenshoe:	$50 million
Maturity:	Feb. 15, 2034
Coupon:	0.5%
Price:	Par
Yield:	0.5%
Conversion premium:	43%
Conversion price:	$9.67
Conversion ratio:	103.4468
Call:	Non-callable for 7 years
Put:	In years 7, 10, 15, 20 and 25
Contingent conversion:	120%
Ratings:	S&P: B+
	Fitch: BB-
Price talk:	0.5-1.0%, up 38-43%
Pricing date:	Feb. 9, after the close
Settlement date:	Feb. 17
Distribution:	Rule 144A

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