Zarlink starts Dutch auction issuer bid for portion of 6% convertibles

By Angela McDaniels

Tacoma, Wash., June 8 - Zarlink Semiconductor Inc. said its board of directors has authorized a formal issuer bid to purchase for cancellation up to C$24 million principal amount of its 6% convertible unsecured subordinated convertibles due 2012.

The purchase price will be determined through a modified Dutch auction. The price per C$1,000 principal amount will not be less than C$500 and not greater than C$700.

Zarlink will select the lowest purchase price that will allow it to purchase the maximum amount of convertibles for C$12 million.

If the combined purchase price of all convertibles offered and accepted under the offer exceeds C$12 million, the convertibles tendered will be subject to proration.

The company will also pay accrued interest up to but excluding the expiration date of the offer, which is 5 p.m. ET on July 15.

The offer is not conditioned on any minimum principal amount of convertibles being tendered, but it is subject to some other conditions.

Zarlink makes semiconductors and is based in Ottawa.

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