Hours after it announced plans to sell up to $1 billion of senior unsecured notes, Flextronics (NASDAQ:FLEX) priced the offering into two separate, $500 million amounts, the company announced yesterday.
Denoted "2020 Notes," the first $500 million of notes have an interest rate of 4.625%, while the $500 million of "2023 Notes" have an interest rate of 5%. Unless repurchased or redeemed, the notes will mature on Feb. 15, 2020 and Feb. 15, 2023, respectively.
Once the sale of notes to institutional and non-U.S. buyers closes on Feb. 20, Flextronics will use the net proceeds along with cash on hand to repay debts from its 2007 term loan facility, which is set to mature in 2014.
Fitch Ratings has assigned a "BBB-" rating to the offering.
The Singapore-based company offers design, engineering, and manufacturing services to a number of industries, among them aerospace and defense, automotive, computing, medical, energy, and mobile OEMs.