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Solectron calls 9 5/8% notes
New York, April 20 - Solectron Corp. said it will redeem all $500 million of its 9 5/8% senior notes due 2009 on May 20.
The Milpitas, Calif., electronic manufacturing services company will pay the greater of 104.813% of par plus accrued interest and the make-whole premium on the notes. The make-whole price is based on the present value of the interest and principal payments up to a redemption on Feb. 15, 2006, discounted at 50 basis points over the Treasury rate.
Solectron said it is using cash on hand to redeem the notes in order to eliminate the interest expense. For the six months to Feb. 25, the company reported cash flow from operations of $477 million; it currently has $1.96 billion of cash on hand.
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