KEMET Corporation Postpones Proposed Financing and Terminates Tender Offer for Its 2.25% Convertible Senior Notes Due 2026
February 12, 2010
GREENVILLE, SC – February 11, 2010 – KEMET Corporation (OTC Bulletin Board: KEME) announced that, as a result of unfavorable market conditions, it has indefinitely postponed its previously announced intent to offer $275 million in aggregate principal amount of senior notes due 2018 to qualified institutional buyers within the United States pursuant to Rule 144A under the Securities Act of 1933, as amended (the Securities Act) and to persons outside the United States pursuant to Regulation S under the Securities Act. As a result of the postponement of the proposed offering, the Company also announced today that it has terminated its tender offer to purchase for cash up to $56,081,000 of its outstanding 2.25% Convertible Senior Notes due 2026. All notes tendered in the tender offer will be returned promptly to the respective holders thereof without any action required on the part of the holders. No tender offer consideration will be paid on any of the tendered notes.
The tender offer was made upon the terms and conditions set forth in an Offer to Purchase dated February 3, 2010 and related Letter of Transmittal, including the condition that the Company receive proceeds from a concurrent debt financing whereby KEMET was to issue debt in an aggregate principal amount of at least $275 million. As a result of the postponement of the proposed offering, the Company does not anticipate satisfying this financing condition on or prior to the March 3, 2010 expiration date of the tender offer.
The Company reserves the right to make a new tender offer at a later date if market conditions become more favorable, but is under no obligation to do so.
This press release is for informational purposes only and does not constitute an offer to sell or purchase or the solicitation of an offer to buy or sell any security. This press release shall not constitute an offer, solicitation or sale in any jurisdiction. This press release is being issued pursuant to and in accordance with Rule 135(c) of the Securities Act.
About KEMET
KEMET Corporation (KEME.OB) 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/.
