Flextronics Receives $255 Million in Cash for the Sale of Its Equity Investment and Note Receivable in Aricent
September 18 2009 - 2:30AM
PR Newswire (US)
SINGAPORE, Sept. 18 /PRNewswire-FirstCall/ -- Flextronics
(NASDAQ:FLEX), today announced that it has completed the sale of
its equity investment and note receivable in Aricent, a
privately-held global innovation, technology and services company
focused exclusively on communications products and services. The
total cash consideration received by Flextronics amounted to $255
million. "As we have previously announced, it is our intention to
monetize non-core assets and benefit from the cash generated from
those dispositions. We are pleased to have successfully executed
this transaction, which increases our cash position and further
strengthens our balance sheet," said Paul Read, chief financial
officer of Flextronics. "During the past year, we have delevered by
approximately $1.4 billion, which includes $1.1 billion of debt
paydown and the reduction of A/R sales and securitizations by
approximately $277 million. These strategic steps have
significantly improved our financial flexibility, while maintaining
our cash balance over the last year at the approximate level of
$1.7 billion." Recent deleveraging events included the successful
repurchase of approximately $200 million of both its 6.5% Senior
Subordinated Notes and its 6.25% Senior Subordinated Notes,
including a consent to modify the indentures for both notes, which
was completed in the quarter ending July 3, 2009. In addition, the
Company retired at maturity $195 million of its 0% Convertible
Junior Subordinated Notes on July 31, 2009. Deutsche Bank
Securities Inc. served as financial advisor to Flextronics for the
Aricent sale. About Flextronics Headquartered in Singapore
(Singapore Reg. No. 199002645H), Flextronics is a leading
Electronics Manufacturing Services (EMS) provider focused on
delivering complete design, engineering and manufacturing services
to automotive, computing, consumer, industrial, infrastructure,
medical and mobile OEMs. Flextronics helps customers design, build,
ship, and service electronics products through a network of
facilities in 30 countries on four continents. This global presence
provides design and engineering solutions that are combined with
core electronics manufacturing and logistics services, and
vertically integrated with components technologies, to optimize
customer operations by lowering costs and reducing time to market.
For more information, please visit http://www.flextronics.com/.
DATASOURCE: Flextronics CONTACT: Warren Ligan or Cindy Klimstra,
Investor Relations, +1-408-576-7172, ; or Renee Brotherton, Vice
President, Corporate Communications, +1-408-576-7189, , all of
Flextronics Web Site: http://www.flextronics.com/
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