KEMET Announces Preliminary Results of Tender Offer
June 30, 2009
GREENVILLE, SC – June 29, 2009 – KEMET Corporation (OTC Bulletin Board: KEME), a leading manufacturer of the majority of capacitor types, including tantalum, multilayer ceramic, solid aluminum, plastic film, paper and electrolytic capacitors, today announced the preliminary results of its tender offer for its 2.25% Convertible Senior Notes due 2026 (CUSIP Nos. 488360 AA6 and 488360 AB4) (the Notes), which expired at 11:59 p.m., New York City time, on June 26, 2009.
Based on preliminary information provided to KEMET by D.F. King & Co., Inc., the information agent and depositary for the tender offer, KEMET expects to acquire $93,919,000 in aggregate principal amount of Notes, representing approximately 53.67 percent of the aggregate principal amount of the outstanding Notes prior to the expiration of the tender offer.
The number of Notes to be purchased is preliminary and the actual purchase of any Notes will only be made upon satisfaction or waiver of the conditions set forth in KEMET’s Offer to Purchase, dated May 5, 2009, as amended and supplemented from time to time. Final results for the tender offer will be determined subject to confirmation by the depositary of the proper delivery of the Notes validly tendered and not validly withdrawn. The actual amount of Notes to be purchased will be announced following the completion of the confirmation process. Payment for the Notes accepted for purchase will occur promptly thereafter.
We have these last 12 months, like many businesses throughout the world, been presented with a series of financial challenges. However, even during these unprecedented times, we have been able to secure a number of definite steps to improve our operations, decrease our cost structure, preserve cash, restructure our short-term debt and now with the anticipated closing of our tender offer, decrease our long term debt as well. We are confident that these improvements have enhanced our financial stability, stated Per Loof, Chief Executive Officer. The completion of our tender offer, which we expect to close tomorrow, June 30, adds further credence to our efforts. The access to credit that this transaction secures will, among other things, provide funding for us to better participate in the economic recovery as it happens. This year we have significantly reduced our break-even point for all our businesses. These actions, the financial resources now available to us, along with a strengthened balance sheet, position KEMET favorably as we return to more normal economic activity levels, continued Loof.
Deutsche Bank Securities Inc. served as the dealer manager for the tender offer. D.F. King & Co. served as the information agent and depositary for the tender offer. Questions regarding the tender offer should be directed to Deutsche Bank Securities Inc. at 1-800-503-4611 (U.S. toll-free). Requests for the Offer to Purchase and other documents relating to the tender offer may be directed to D.F. King & Co. at (212) 269-5550 (for banks and brokers only) or 1-800-431-9643 (U.S. toll-free).
About KEMET
KEMET Corporation (OTC:KEME) (BULLETIN BOARD: KEME) applies world-class service and quality to deliver industry-leading, high-performance capacitance solutions to its customers around the world. KEMET offers the world’s most complete line of surface-mount and through-hole capacitor technologies across tantalum, ceramic, film, aluminum, electrolytic, and paper dielectrics. Additional information about KEMET can be found at http://www.kemet.com/.
