Conexant buys back 19.5% of its $275 million of floating-rate notes

By Susanna Moon

Chicago, March 17 - Conexant Systems, Inc. said investors tendered $275 million of floating-rate senior secured notes due 2010 in the company's cash tender offer to buy up to $53.6 million principal amount of the notes.

The offer began on Feb. 12 and expired at 5 p.m. ET on March 12.

As the offer was not to exceed $53.6 million, the company said it accepted for purchase 19.49% of the notes validly tendered and returned the remaining amount to noteholders.

The settlement date is March 17.

On May 4, 2007, Conexant said it believed it would be required to offer to repurchase $46.5 million of its floating-rate notes at par plus accrued interest during the first calendar quarter of 2008.

The company said it would be required to offer to repurchase all or part of the notes with the proceeds of certain asset dispositions if those proceeds were not used to invest in assets related to its business within one year.

The sale of Conexant's investment in Jazz Semiconductor in February 2007 and the sale of two other equity investments in January 2007 qualified as asset dispositions, and the company estimated it would be required to hold the tender offer based on the proceeds received and on its estimated cash investments in business-related assets.

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

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