New York, Aug. 16 - Solectron Corp. remarketed $64.3 million of its 7¼% subordinated debentures due 2006 at 101.98 on Monday with the interest rate reset to 7.97%, resulting in a 7.007% yield.
The debentures were previously part of Solectron's Adjustable Conversion-Rate Equity Security Units (ACES) issue. Following the remarketing they are no longer part of the units.
Banc of America Securities LLC was the remarketing agent.
Proceeds will be used to purchase U.S. Treasury securities that will be pledged to secure the stock purchase obligations of the holders of the Equity Security Units. In November Solectron will receive $64.3 million from the collateral agent and issue common stock under the forward stock purchase contracts.
Solectron is a Milpitas, Calif., electronic manufacturing services company.
| Issuer: | Solectron Corp.
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| Amount: | $64.3 million
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| Maturity: | Aug. 17, 2006
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| Security description: | Subordinated debentures
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| Remarketing agent: | Banc of America Securities LLC
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| Coupon: | 7.97%
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| Issue price: | 101.98
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| Yield: | 7.007%
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| Remarketing date: | Aug. 16
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| Settlement date: | Aug. 19
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