Aspocomp wraps tender offer, buys back 94.9% convertibles in all

Total buyback includes 69.2% of bonds redeemed under agreement

By Susanna Moon

Chicago, June 28 - Aspocomp Group plc said that holders tendered about 25.6% nominal value of its convertible bonds by the offer deadline at 9 a.m. ET on June 22, and the company bought back 69.2% of the bonds from June 8 through June 10 under a previous agreement.

As a result, the company has bought back about 94.9% nominal value of the bonds, according to a company press release.

After settlement on June 30, there will be €530,000 of the bonds outstanding, of which €330,000 with interest is due and payable on Dec. 1 and €200,000 with interest is due and payable on Dec. 1, 2013, the release noted.

Aspocomp announced the tender offer on May 31 for its convertibles issued on Dec. 1, 2006 after the Finnish Financial Supervisory Authority approved the offer the same day.

The company came forward with its plans on May 24 to hold the cash tender offer for its convertibles in conjunction with a redemption agreement reached with the holders of a majority of the bonds.

As previously noted, the transactions were made in connection with Aspocomp's signing of a letter of intent on May 4 with TTM Technologies, Inc., under which TTM will pay €14.5 million as the final payment for receivables from the 2007 sale of Aspocomp's subsidiary. The receivables are related to Aspocomp's remaining 20% stake in Meadville Aspocomp (BVI) Holdings Ltd.

The companies agreed on a call and put option, and Aspocomp and the holders of 69.2% of the convertibles agreed to the redemption of the securities, conditioned on the completion of the TTM transaction.

The company said that the total nominal value of the bonds was €10.3 million. Subject to the completion of the TTM transaction, Aspocomp said it would use the proceeds in addition to cash on hand to purchase 69.2% of the bonds and repay debt to its bank lenders.

This left €3.17 million of the bonds affected by the tender offer, which had a purchase price of €667 per €1,000 principal amount. The consideration corresponds to the amount to be received by holders who have signed the redemption agreement.

Tendering holders will also receive an amount of interest equivalent to 2.1% per year from the date the holders who signed the redemption agreement receive payment to the settlement date for the tender offer. Regular accrued interest on the convertibles will not be paid.

Evli Bank plc was the arranger of the tender offer. Questions may be directed to Aspocomp chief executive officer Sami Holopainen (358 9 59 181).

The Espoo, Finland-based company provides services for the design and manufacture of high-tech PCBs.

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