SOLECTRON CORP. PRICES LYONS OFFERING
SOLECTRON CORP. PRICES LYONS OFFERING MILPITAS, Calif., April 28 /PRNewswire/ -- Solectron Corp.
(NYSE: SLR) announced today that it is offering $400 million of Liquid Yield Option Notes (LYONs) due 2012. The size of the offering was increased to $400 million principal amount at maturity from $300 million through an amendment filed with the Securities and Exchange Commission today.
The offering will result in approximately $97.3 million of net proceeds to Solectron (or approximately $112 if the underwriters over- allotment option is exercised in full). The net proceeds to the company from the sale of the LYONs will be available for general corporate purposes. A portion of such net proceeds may be used to fund expansion into Europe, including the proposed transaction with IBM. The LYONs offered by Solectron are convertible zero coupon, subordinated notes that have no periodic interest payments. Each of the LYONs is being offered by Solectron at $252.57 per $1,000 principal amount at maturity, representing a conversion rate of 10.396 shares of common stock of Solectron per LYON. The yield to maturity is 7 percent per annum, computed on a semi-annual basis. Based on the closing price of $21 1/8 per Solectron share on April 27, 1992, the initial conversion price is $24.29. Merrill Lynch & Co. is acting as sole underwriter for the offering. Solectron is a leading independent provider of advance manufacturing services including sophisticated manufacturing process technologies and turnkey manufacturing, to original equipment manufacturers in the computer and electronics industry. The company is a full-service manufacturer and specializes in the assembly of complex printed circuit boards using surface mount and pin- through-hole interconnection technologies and in the testing and assembly of electronics systems and subsystems. Solectron also provides additional manufacturing services, remanufacturing and testing and consultation regarding board design and manufacturability. This announcement shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any state. The offering of these securities shall only be made by means of a prospectus. Copies of the prospectus relating to the offering may be obtained from Merrill Lynch & Co. at World Finance Center, North Tower, New York, NY 10281. -0- 4/28/92 /CONTACT: Susan Wang, senior VP and CFO of Solectron Corp., 408-956-6571/ (SLR) CO: Solectron Corp. ST: California IN: CPR SU: OFR
CH -- LA019 -- 3620 04/28/92 09:35 EDT
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|Date:||Apr 28, 1992|
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