Reptron Electronics again prolongs tender for senior secured notes due 2009

By Jennifer Chiou

New York, Feb. 1 - Reptron Electronics, Inc. once more extended its cash tender offer for any and all of its senior secured notes due 2009, this time to 5 p.m. ET on Feb. 2.

The offer was set to expire at 5 p.m. ET on Jan. 31, pushed back from Jan. 24.

The Tampa, Fla., electronics manufacturing services company is soliciting consents to amend the note indenture to eliminate most restrictive covenants and certain events of default.

As of 5 p.m. ET on Jan. 31, the company had received tenders from holders of $25,243,710 or 84.15% of the notes.

As previously reported, at 5 p.m. ET on Jan. 24, the company had tenders for $25,467,259 or 85% of the notes.

The offer is a condition to the previously announced merger agreement, under which Gator Electronics, Inc. will merge with and into Reptron, with the company continuing as a wholly owned subsidiary of Kimball Electronics Manufacturing, Inc.

The company needs consents from at least 97% of noteholders and said it has executed support agreements with holders of about 80% of noteholders to tender and give consents.

The company said it will pay $0.875 per $1.00 principal amount, plus accrued interest up to, but not including, the payment date.

The tender is also conditioned on the availability of sufficient funds connected to the merger.

CapitalBridge is the solicitation agent (877 746-3583). HSBC Bank USA, NA is the depositary (800 662-9844).

The company previously added it plans to start a proxy solicitation linked to the merger.

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