Kemet cancels tender offer for 2.25% convertibles, delays notes issue

By Susanna Moon

Chicago, Feb. 11 - Kemet Corp. said it canceled the tender offer for up to $56.08 million of its $81.08 million outstanding 2.25% convertible senior notes due 2026.

The tender offer was to expire at 11:59 p.m. ET on March 3. The offer began on Feb. 3.

Kemet said that as a result of unfavorable market conditions, it has indefinitely postponed its plans to issue $275 million principal amount of senior notes due 2018 under Rule 144A.

The tender offer was conditioned upon the completion of that debt financing.

Kemet said it may begin a new tender offer at a later date if market conditions improve.

In the tender offer, the company had planned to pay $965 for each $1,000 of convertibles plus interest to the payment date.

Bank of America Merrill Lynch (888 292-0070) was the dealer manager. D.F. King & Co., Inc. (800 714-3312 or 212 269-5550) was the information agent and depositary.

Kemet is a Simpsonville, S.C.-based manufacturer of tantalum, multilayer ceramic, film, electrolytic paper and solid aluminum capacitors.

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