Conexant will likely hold tender offer for floating-rate notes

By Angela McDaniels

Seattle, May 4 - Conexant Systems Inc. believes it will be required to offer to repurchase $46.5 million of its $275 million floating-rate senior secured notes due 2010 at par plus accrued interest during the first calendar quarter of 2008, according to the company's 10-Q report filed with the Securities and Exchange Commission on Friday.

The company is required to offer to repurchase all or part of the notes with the proceeds of certain asset dispositions if those proceeds are not used to invest in assets related to its business within one year, according to the filing.

The sale of Conexant's investment in Jazz Semiconductor in February and the sale of two other equity investments in January qualify as asset dispositions, and the company said it estimates it will be required to hold the tender offer based on the proceeds received and on its estimated cash investments in business-related assets.

Conexant Systems is a Newport Beach, Calif., provider of semiconductor solutions for broadband communications.

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