Celestica to repurchase LYONs
Jul 06, 2005
Celestica Inc. (NYSE, TSX: CLS) announced that holders of its Liquid Yield Option(TM) Notes due 2020 (Zero Coupon- Subordinated) (the "LYONs") have the right to surrender their LYONs for purchase as of July 5, 2005. Each holder of the LYONs has the right to require Celestica to purchase on August 2, 2005 all or any part of such holder's LYONs at a price equal to US$572.82 per US$1000 principal amount at maturity. Under the terms of the LYONs, Celestica has the option to settle its repurchase obligation in cash, subordinate voting shares, or a combination of cash and subordinate voting shares, and has elected to pay for the LYONs solely with cash. If all outstanding LYONs are surrendered for purchase, the aggregate cash purchase price will be approximately US$352 million.
In order to surrender LYONs for purchase, a purchase notice must be delivered to JPMorgan Chase Bank, the trustee for the LYONs, on or before 5:00 p.m. EDT, on or before August 2, 2005. Questions and requests for assistance in connection with the process for the surrender of LYONs may be directed to JPMorgan Chase Bank, N.A., at (800) 275-2048. Holders of LYONs complying with the transmittal procedures of the Depository Trust Company need not submit a physical purchase notice to JPMorgan Chase Bank. Holders may withdraw any LYONs surrendered for purchase in response to this offer at any time prior to 5:00 p.m., EDT, on August 2, 2005.
Celestica will file a Tender Offer Statement on Schedule TO with the Securities and Exchange Commission on July 5, 2005. Celestica will make available to LYONs holders, through the Depository Trust Company, documents specifying the terms, conditions and procedures for surrendering and withdrawing LYONs for purchase. LYONs holders are encouraged to read these documents carefully before making any decision with respect to the surrender of LYONs, because these documents contain important information regarding the details of Celestica's obligation to purchase the LYONs.
The LYONs are convertible under certain circumstances into 5.6748 shares of Celestica subordinate voting shares per US$1,000 principal amount at maturity of LYONs, subject to adjustment under certain circumstances.