Solectron says convertibles tender oversubscribed

New York, July 22 - Solectron Corp. said its modified dutch auction tender offer to buy back up to $1.5 billion of its Liquid Yield Option Notes due 2020 was oversubscribed at the top end of the offer range, with $1.9 billion principal amount of the securities validly tendered.

As a result, the Milpitas, Calif. electronics manufacturer said it will accept 77.6% of the convertibles tendered.

Solectron will pay $600 per $1,000 principal amount for the LYONs, the top end of the $580 to $600 range it announced for the offer. All securities will be bought at the same price.

The payment will be made on July 25 at which time Solectron will also announce the final, verified results of the offer.

Solectron's tender expired at midnight ET on July 19.

The company announced the transaction on June 20, saying it aimed to reduce its debt and extend the average maturity.

The cash purchase price of $900 million will be funded through cash on hand.

Morgan Stanley & Co. Inc. was dealer manager for the offer, U.S. Bank was the depositary and Georgeson Shareholder Communications was the information agent.

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