KEMET Corporation Announces Proposed Private Offering of an Additional $100,000,000 of 10-1/2% Senior Notes Due 2018
KEMET Corporation (NYSE: KEM) today announced that it intends to offer, subject to market and customary conditions, an additional $100 million in aggregate principal amount of 10-1/2% senior notes due 2018 (the "Senior Notes") in a private offering that is exempt from registration under the Securities Act of 1933, as amended (the "Securities Act"). The Senior Notes will have identical terms to, and are expected to be treated as a single class with, the $230 million in aggregate principal amount of 10-1/2% senior notes due 2018 issued on May 5, 2010.
The Senior Notes are expected to be guaranteed by each of KEMET's domestic restricted subsidiaries and secured by a first priority lien on 51% of the capital stock of certain of KEMET's foreign restricted subsidiaries. KEMET intends to use the net proceeds from the sale of the Senior Notes to finance a portion of the acquisition of Niotan Incorporated, make the initial payment to acquire a portion of NEC TOKIN Corporation, pay related transactions fees and expenses and for general corporate purposes.
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