Jabil Calls Convertible Subordinated Notes.
ST. PETERSBURG, Fla.--(BUSINESS WIRE)--April 16, 2004
Jabil Circuit, Inc. (NYSE:JBL), a global electronics manufacturing services provider, today announced that it is exercising its right to call all of its 1.75% Convertible Subordinated Notes due 2021 (the "Notes") for redemption on May 18, 2004. Holders of Notes redeemed on May 18, 2004 will receive 100% of the principal amount of the Notes, as well as accrued and unpaid interest thereon from May 15, 2004 through May 17, 2004. Jabil will fund the redemption of the Notes with cash on hand. The Notes were originally issued on May 2, 2001, in the aggregate principal amount of $345,000,000, and such amount is currently outstanding. The CUSIP number for the Notes is 466313 AA1.
Prior to the close of business on May 17, 2004, holders may convert their Notes into shares of Jabil common stock at a price of $41.038 per share, or 24.368 shares of Jabil common stock per $1,000 principal amount of the Notes. Cash will be paid in lieu of fractional shares. On April 16, 2004, the last reported sale price of Jabil common stock on The New York Stock Exchange was $28.51 per share.
The holders of the Notes separately also have the right to require Jabil to repurchase all or any portion of their Notes on May 15, 2004, at a purchase price equal to 100% of the principal amount of the Notes, plus accrued and unpaid interest thereon to, but excluding, May 15, 2004. Notes purchased by Jabil on such date shall thereafter cease to accrue interest.
Regardless of whether a holder of Notes requires Jabil to purchase their Notes on May 15, 2004 or the Notes are redeemed by Jabil on May 18, 2004, interest on the Notes for the six months ended May 14, 2004, will be paid on May 15, 2004, as scheduled pursuant to the terms of the Indenture governing the Notes. Any Notes called for redemption and not converted on or before the close of business on May 17, 2004, will be automatically redeemed on May 18, 2004, and no further interest will accrue.
Redeeming the Notes eliminates interest payments of $6.0 million per year by Jabil. In addition, as previously disclosed by Jabil, Jabil expects to incur a one-time pre-tax non-cash charge to GAAP earnings of $6.5 million in the third quarter of fiscal 2004, representing the cost of the remaining unamortized issuance costs. The interest expense savings and one-time non-cash charge do not impact the core earnings per share guidance given by Jabil in its second quarter earnings release. Jabil defines core earnings as GAAP net income before amortization of intangibles, acquisition related charges, restructuring and impairment charges and other income, net of tax.
A Notice of Redemption and Right to Convert and a Notice of Right to Require Repurchase are being sent to the registered holders of the Notes.
Copies of the Notice of Redemption and Right to Convert and a Notice of Right to Require Repurchase may be obtained from the paying agent, The Bank of New York, at The Bank of New York Trust Company, N.A., Corporate Trust Administration - 2nd Floor, 10161 Centurion Parkway, Jacksonville, FL 32256, Attn: Clay Cardozo.
Jabil Circuit, Inc. is a global leader in the Electronic Manufacturing Services (EMS) industry, offering innovative solutions to world leading electronics companies in the aerospace, automotive, computing, consumer, defense, instrumentation, medical, networking, peripherals, storage and telecommunications markets. Jabil offers circuit design, board design from schematic, mechanical and production design, product realization services, product research and development, testing prototype assembly, volume board assembly, system assembly, enclosure services, direct fulfillment, repair and warranty services from facilities in the Americas, Europe and Asia. Jabil common stock is traded on the New York Stock Exchange under the symbol "JBL." Further information about Jabil can be found on the company's web site at http://www.jabil.com.
This press release contains forward-looking statements. These statements are based on current expectations, forecasts and assumptions involving risks and uncertainties that could cause actual outcomes and results to differ materially. These risks and uncertainties include risks, relevant factors and uncertainties identified in our Annual Report on Form 10-K for the fiscal year ended August 31, 2003, any subsequent Reports on Form 10-Q and Form 8-K and our other securities filings. Jabil disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
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|Date:||Apr 16, 2004|
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