New Issue: Solectron prices $150 million 10-year notes at par to yield 8%

By Paul A. Harris

St. Louis, Feb. 14 - Solectron Global Finance Ltd. priced a $150 million issue of 10-year senior subordinated notes (B3/B-/B+) at par on Tuesday to yield 8%, according to an informed source.

The yield came at the tight end of the 8% to 8 1/8% price talk.

Banc of America Securities, Morgan Stanley and Citigroup were joint bookrunners for the notes, which were sold via Rule 144A with registration rights and via Regulation S. The joint lead managers were Goldman Sachs & Co., JP Morgan and Scotia Capital. The co-managers were KeyBanc and The Royal Bank of Scotland.

Proceeds will be used to repay at maturity the company's 7 3/8% senior notes due March 1, 2006.

Solectron is a Milpitas, Calif., electronics manufacturing services provider.

Issuer:	Solectron Global Finance Ltd. (Solectron Corp.)
Amount:	$150 million
Maturity:	March 15, 2016
Security description:	Senior subordinated notes
Bookrunners:	Banc of America Securities, Morgan Stanley, Citigroup
Joint lead managers:	Goldman Sachs & Co., JP Morgan, Scotia Capital
Co-managers:	KeyBanc, The Royal Bank of Scotland
Coupon:	8%
Price:	Par
Yield:	8%
Spread:	339 basis points
Call features:	Make-whole call at Treasuries plus 50 basis points until March 15, 2011, then callable at 104.0, 102.667, 101.333, par on and after March 15, 2014
Equity clawback:	Until March 15, 2009 for 35% at 108.0
Trade date:	Feb. 14
Settlement date:	Feb. 21
Ratings:	Moody's: B3
	Standard & Poor's: B-
	Fitch: B+
Distribution:	Rule 144A with registration rights/Regulation S
Price talk:	8%-8 1/8%

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