Analysis
STMicroelectronics Announced the Repurchase of a Portion of its Zero Coupon Senior Convertible Bonds due 2016
STMicroelectronics (NYSE: STM) today announced that it has completed a program to repurchase a portion of its outstanding Zero Coupon Senior Convertible Bonds due 2016 (“2016 Bonds”). A total of $298,174,000 nominal value of 2016 Bonds were repurchased representing approximately 30.6% of the total amount originally issued.
BegiThe decision to repurchase a portion of the 2016 Bonds was taken in anticipation of the put option exercisable by bondholders on February 23, 2011 and optimizes ST’s liquidity management and yield through that date. “The repurchase of a portion of our 2016 convertible bonds with no need for refinancing demonstrates the strength of ST’s capital structure and reflects our confidence in the Company’s free cash-flow generation going forward,” said Carlo Ferro, Chief Financial Officer of STMicroelectronics.
The 2016 Bonds are listed on the Luxembourg Stock Exchange.