STMicroelectronics buys back $298.17 million zero-coupon convertibles

By Jennifer Chiou

New York, Jan. 14 - STMicroelectronics NV announced that it repurchased $298,174,000 principal amount of its zero-coupon senior convertible bonds due 2016 under a repurchase program.

The purchase amount makes up about 30.6% of the total amount originally issued.

STMicroelectronics said it paid $314.6 million using cash on hand to purchase the bonds with an accreted value of $316 million.

Beginning in December, the bonds were purchased in off-market transactions by financial intermediaries acting as agents. The acquired bonds will be canceled.

The company added that its decision to repurchase a portion of the securities was in anticipation of the put option exercisable by bondholders on Feb. 23, 2011.

STMicroelectronics is a semiconductor company based in Geneva.

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