Summary
Flextronics International Ltd. (FLEX) filed an 8-K report on November 12, 2004, detailing a significant financing event. The company announced and subsequently priced an offering of $500 million in aggregate principal amount of its senior subordinated notes due in 2014, with a coupon rate of 6.25%. This offering was made to qualified institutional buyers under Rule 144A and to purchasers outside the United States under Regulation S. The primary purpose of this filing is to disclose this material event related to the company's debt financing. Investors should note the company's proactive approach to capital raising and the terms of this debt issuance.
Key Highlights
- 1Flextronics International Ltd. announced a private placement of $500 million in senior subordinated notes.
- 2The notes are due in 2014.
- 3The offering was priced at a 6.25% interest rate.
- 4The offering was conducted under Rule 144A for qualified institutional buyers in the U.S.
- 5The offering was also conducted under Regulation S for international purchasers.
- 6The report was filed on November 12, 2004, with the earliest event reported being November 9, 2004.
- 7Robert R.B. Dykes, President of the Systems Group and CFO, signed the report.
Frequently Asked Questions
The primary purpose of this 8-K filing is to publicly announce and provide details on Flextronics International Ltd.'s completed offering of $500 million in senior subordinated notes due 2014.
The offering consists of $500 million in aggregate principal amount of senior subordinated notes due 2014, with a fixed interest rate of 6.25%.
The notes were offered to qualified institutional buyers in the United States under Rule 144A and to purchasers outside the United States under Regulation S.
Senior subordinated notes are debt instruments that rank below other senior debt but above equity in the company's capital structure. In the event of bankruptcy or liquidation, holders of senior subordinated notes would be repaid after senior debt holders but before equity holders.