8-KOther EventsExhibits & Filings

FLEX LTD. 8-K Report, Corporate Update (May 29, 2009)

Filed May 29, 2009For Securities:FLEX

Summary

Flextronics International Ltd. (FLEX) announced on May 29, 2009, a significant move to manage its debt by launching a cash tender offer for its outstanding Senior Subordinated Notes. The company is offering to repurchase up to $100 million each of its 6 1/2% Senior Subordinated Notes due 2013 and its 6 1/4% Senior Subordinated Notes due 2014. This initiative aims to reduce the principal amount of debt and potentially optimize the company's capital structure. In addition to the tender offer, Flextronics is soliciting consents from noteholders to amend certain covenants within the indentures governing these notes. Specifically, the proposed changes relate to restricted payments and related definitions. This suggests the company may be seeking greater flexibility in its financial operations and strategic decision-making. Investors should monitor the outcome of this tender offer and consent solicitation, as it could impact the company's leverage ratios and future financial flexibility.

Key Highlights

  • 1Flextronics launched a cash tender offer to repurchase up to $100 million of its 6 1/2% Senior Subordinated Notes due 2013.
  • 2Flextronics launched a cash tender offer to repurchase up to $100 million of its 6 1/4% Senior Subordinated Notes due 2014.
  • 3The tender offer is set to expire on June 25, 2009, unless extended or terminated.
  • 4Flextronics is also soliciting consents to amend restricted payments covenants in the indentures for both note series.
  • 5These actions indicate a proactive approach by management to manage the company's outstanding debt.
  • 6The tender offer and consent solicitation are aimed at potentially reducing debt principal and gaining financial flexibility.

Frequently Asked Questions

Flextronics is offering to purchase up to $100,000,000 aggregate principal amount of its 6 1/2% Senior Subordinated Notes due 2013 and up to $100,000,000 aggregate principal amount of its 6 1/4% Senior Subordinated Notes due 2014 for cash.

The tender offer is scheduled to expire at 12:00 midnight, New York City time, on June 25, 2009, unless extended or terminated by Flextronics.

Flextronics is simultaneously soliciting consents from holders of the notes to make certain amendments to the restricted payments covenants and related definitions within the respective indentures governing these notes.

Amending restricted payments covenants typically provides a company with more flexibility to make dividends, distributions, investments, or other payments, which could be important for ongoing operations or future strategic initiatives.