Hi Tom,
OK, I see, they will be offering a billion dollars of equity "Security Units", convertible into both stock and debt, and want to get the offering priced and started this week. Goldman is their advisor--they sure don't want to take any chances with this market, and SLR hasn't even made nearly as nice a run over the past couple of weeks as the other 4 big ECMs. Indeed, I believe their market cap has even dropped below FLEX's now.
Sam
EDIT: Just did a quick check on SI, market caps for the leading ECM stocks are: FLEX $12.76b, SLR $11.92, SANM/SCI $11.66, CLS $9.83, and JBL $5.43. I don't really know how accurate those numbers are, they all probably have various convertibles outstanding that may or may not be reflected in SI stats.
Solectron Announces Adjustable Conversion-Rate Equity Security Units Offering
MILPITAS, Calif., Dec 18, 2001 /PRNewswire via COMTEX/ -- Solectron Corporation (NYSE: SLR chart, msgs), the
world's leading provider of electronics manufacturing and supply-chain services, today announced a public offering of $1
billion, or 40 million units, of Adjustable Conversion-Rate Equity Securities, or ACES(SM).
(Photo:http://www.newscom.com/cgi-bin/prnh/20001201/SLRLOGO )
The units are expected to consist of three-year forward-purchase contracts to purchase a variable number of shares of
Solectron common stock and five-year notes.
Solectron also intends to commence an offering of at least $500 million of unsecured fixed-rate debt early in calendar
2002. No terms have been set and there can be no assurance that the company will successfully complete the proposed
offering.
The underwriter, Goldman, Sachs & Co., will have the option to purchase up to an additional $150 million, or 6 million
units, of ACES to cover over-allotments, if any.
This news release is not an offer to sell or a solicitation of an offer to buy ACES, and they will not be sold in any state or
jurisdiction in which an offer, solicitation, or sale would be unlawful under the securities laws of that state or
jurisdiction. The offering may be made only through a prospectus, which may be obtained by contacting Goldman, Sachs &
Co., Prospectus Department, 85 Broad St., New York, NY 10004.
The ACES are to be priced, subject to market conditions, the week of Dec. 17. The ACES would be offered under the
company's shelf registration statement declared effective Aug. 29, 2001, by the Securities and Exchange Commission. |
