Electronics Production | August 22, 2006
Sanmina-SCI commences consent solicitation from note holders
Sanmina-SCI Corporation announced today that it is soliciting consents from the holders of the $400 million aggregate outstanding principal amount of its 6 3/4% Senior Subordinated Notes due 2013 and the holders of the $600 million aggregate outstanding principal amount of its 8.125% Senior Subordinated Notes due 2016.
In each case, the Company is requesting a waiver, until December 14, 2006, of any default or event of default that may arise by virtue of the Company's failure to file with the Securities and Exchange Commission and furnish to the trustee and holders of notes, certain reports required to be filed by the Company under the Securities Exchange Act of 1934, as amended (the "Reporting Provisions"). Holders of the notes are referred to the Company's Consent Solicitation Statement dated August 21, 2006 and the related Letter of Consent, which are being mailed to each holder, for the detailed terms and conditions of the consent solicitation. As previously announced, the Company has not yet filed with the Securities and Exchange Commission its Quarterly Report on Form 10-Q for the fiscal quarter ended July 1, 2006. The Company is offering a consent fee of $16.25 in cash for each $1,000 in principal amount of its 6 3/4% Senior Subordinated Notes due 2013. The Company is offering a consent fee of $10.00 in cash for each $1,000 in principal amount of its 8.125% Senior Subordinated Notes due 2016. The Company has received indications from the beneficial holders of a majority in outstanding principal amount of the 8.125% Senior Subordinated Notes due 2016 and approximately 48% of the 6 3/4% Senior Subordinated Notes due 2013 that they intend to consent to the proposed waiver. The record date for determining the holders who are entitled to consent is August 21, 2006. The proposed waiver for each series of notes shall become effective for such series promptly following (i) receipt of valid and unrevoked consents from holders representing a majority of the outstanding aggregate principal amount of such series of notes, (ii) execution of a supplemental indenture to the indenture governing such series of notes, if required, and (iii) payment of the consent fee for such series of notes. The consent solicitation will expire at 5:00 p.m., New York City time, on September 6, 2006, unless extended. Holders may tender their consents to the Tabulation Agent at any time before the expiration date. Holders may revoke their consents as described in the Consent Solicitation Statement.