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Milpitas, Calif. -- Solectron Corp. intends to use cash to meet any obligations to repurchase its zero-coupon senior convertible notes due in May 2020.
Note holders have the right to require Solectron to repurchase all or a portion of the notes they hold as of May 8, 2003. Under the terms of the notes, Solectron is required to notify note holders whether the company will pay the purchase price in cash, Solectron common stock or a combination of cash and common stock.
The procedures to be followed by holders electing to have their notes repurchased are contained in a notice delivered to note holders, including the Depository Trust Corporation, by U.S. Bank National Association, the trustee for the notes. Solectron notified the trustee that it intends to satisfy its repurchase obligations solely with cash and not with common stock.
The accreted value of the notes outstanding as of February 28 was about $522 million.
Solectron Corp. provides a full range of global manufacturing and supply-chain management services to the world's premier high-tech electronics companies. For more information, visit www.solectron.com.