Solectron says 94% of ACES tendered

New York, May 6 - Solectron Corp. said holders tendered 41.4 million or 94% of its outstanding 7.25% Adjustable Conversion Rate Equity Security Units in its early settlement offer for the convertibles. The response is equivalent to $1.035 billion of the securities.

Solectron announced the offer on April 8, saying it would exchange up to 95% of the ACES for stock and cash.

For each $25 unit, Solectron will pay 2.5484 shares and $1.97 in cash.

The Milpitas, Calif., electronic manufacturing services company said the exchange is intended to settle the ACES early. They currently are scheduled to mature on Nov. 15, 2004.

Assuming Solectron's stock remains below $9.81, holders would receive 2.5484 shares at the maturity of the ACES if they do not accept the offer.

The exchange covers up to 41.8 million of the ACES or $1.045 billion. There are currently 44 million outstanding or $1.1 billion.

The offer expired at midnight ET on May 5.

The exchange agent is U.S. Bank NA. The information agent is Georgeson Shareholder Communications Inc. (banks and brokers call 212 440-9800; others call 800 905-7166).

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.