Kemet To Offer $275 Million Of Senior Notes

(Comment on this article at http://www.financialwire.net/2010/02/04/kemet-to-offer-275-million-of-senior-notes/)

February 4, 2010 (FinancialWire) -- Kemet Corp. (OTCBB: KEME) plans to offer $275 million in aggregate principal amount of senior notes due 2018 to institutional buyers within the United States.

The 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 the firm's foreign restricted subsidiaries.

Kemet said it plans to use the net proceeds from the sale of the senior notes to repay substantially all of the indebtedness outstanding under its existing credit facilities, to fund a tender offer for a portion of its outstanding 2.25% convertible senior notes due 2026 and to pay transaction fees and expenses related to the tender offer, the offering of the senior notes and the repayment of its credit facilities.

South Carolina-based Kemet offers a line of surface mount and through hole capacitor technologies across tantalum, ceramic, film, aluminum, electrolytic, and paper dielectrics.

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