Macronix starts tender for 1% convertibles

New York, Dec. 24 - Macronix International Co., Ltd. announced a tender offer for its 1% convertible bonds due 2005.

The Taipei, Taiwan chipmaker is offering to pay $1,220 per $1,000 principal amount of the bonds or a price of 122. That level is a premium of $5.78 per $1,000 principal amount over the 121.422 price at which the bonds can be put back to the company on Feb.1, 2003. Holders will also receive accrued interest up to but excluding Feb. 1.

Macronix said in tender documents filed with the Securities and Exchange Commission that it is carrying out the offer to reduce its ongoing debt service obligations.

The tender expires at 5.00 p.m. ET on Jan. 24. Convertibles tendered may be withdrawn at any time up to the deadline.

Macronix also noted that it has extended the notification deadline for exercising the put to Jan. 14 from Jan. 2.

The bonds are also callable from Feb. 1, 2003 onwards at a price that gives a yield to redemption of 7.50%.

Macronix said there are currently $72.097 million of the convertibles outstanding. The company added that it has deposited $88.319 million of cash with Bank of New York, the tender agent, which will cover redemption of all the bonds.

There is no minimum requirement for the tender to go ahead.

Macronix previously repurchased $78.825 million of the convertibles in open market transactions and on Dec. 20 bought a further $8 million principal amount at a price of 121.85 - the mid point of bid and offered prices - from KBC Financial Products UK Ltd., according to the SEC filing. Macronix expects to settle the most recent purchase on Dec. 31.

The bonds convert into Macronix stock at NT$41.3505 per share as of Dec. 20. Macronix stock closed at NT$11.40 on that day.

The dealer manager for the tender is Credit Suisse First Boston (Hong Kong) Ltd. (contact Julian Hall at +852 2101 6939) and Bank of New York is tender agent (contact Bernard Arsenec at 212 815 5098).

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