Summary
Flextronics International Ltd. (FLEX) announced on February 16, 2010, its intention to redeem all outstanding 6.5% Senior Subordinated Notes due 2013. This action involves approximately $299.8 million in principal amount, with the redemption scheduled for March 19, 2010. The redemption price is set at 102.167% of the principal amount, plus any accrued and unpaid interest. Investors should note that the company plans to finance this redemption using its available cash on hand. This move suggests a proactive approach to managing its debt obligations, potentially indicating a favorable cash position or a strategic decision to reduce interest expenses and simplify its capital structure.
Key Highlights
- 1Flextronics International Ltd. is calling for the redemption of its 6.5% Senior Subordinated Notes due 2013.
- 2The total outstanding principal amount of these notes is approximately $299.8 million as of February 16, 2010.
- 3The redemption date is scheduled for March 19, 2010.
- 4The redemption price will be 102.167% of the principal amount, plus accrued and unpaid interest.
- 5The company intends to fund the redemption using its existing available cash.
- 6This action is being communicated via a press release filed as an exhibit to the 8-K.