Kemet tenders for $40.5 million 2.25% convertible notes due 2026

By Devika Patel

Knoxville, Tenn., April 20 - Kemet Corp. said it has begun a tender offer for up to $40.5 million of its 2.25% convertible senior notes due 2026. There is $81.08 million of the convertibles outstanding.

The tender offer will expire at 11:59 p.m. ET on May 17.

Holders who validly tender their securities prior to the offer's expiration will receive $935 for each $1,000 principal amount of convertibles, plus interest to, but excluding, the payment date.

The tender offer is conditioned upon the completion of a concurrent $225 million debt financing.

If more than $40.5 million of the notes is validly tendered, the company will allocate acceptances on a pro rata basis.

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

In February, the company began a tender offer for up to $56.08 million of the convertibles, offering $965 for each $1,000 in securities, but cancelled the offer a week later as a result of unfavorable market conditions.

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

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