Solectron receives tenders of 96.4% of 0.5% convertibles in exchange

New York, Feb. 11 - Solectron Corp. said it received tenders of $433.92 million or 96.4% of its $450 million principal amount of 0.5% convertible senior notes due 2034 under its exchange offer for the securities.

The results are preliminary and exclude notes tendered under notices of guaranteed delivery.

As announced on Jan. 13, the company was offering new 0.5% convertible senior notes series B due 2034. Among the differences between the issues, the new notes will be convertible into cash or, at Solectron's choice, cash and stock subject to certain conditions, while the existing notes are convertible into stock only.

The Milpitas, Calif., electronic manufacturing services company said the change will allow it to use the treasury stock method of accounting for the shares issuable upon conversion of the new notes.

The notes will be exchanged on a one-for-one basis. Solectron will also pay an exchange fee of $2.50 per $1,000 principal amount.

The exchange expired at midnight ET on Feb. 10.

Goldman, Sachs & Co. is dealer manager. The exchange agent is U.S. Bank NA. The information agent is Georgeson Shareholder Communications Inc. (bank and brokers call 212 440-9800; others call 800 460-0079).

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