Solectron says 99.4% of 0.5% convertibles tendered in exchange

New York, Feb. 16 - Solectron Corp. said the final count of tenders in its exchange offer for its $450 million principal amount of 0.5% convertible senior notes is $447.298 million or 99.4%.

The figure is up from the preliminary figure of $433.92 million or 96.4% released on Feb. 11.

Following the exchange, $2.702 million of the old notes remain outstanding.

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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