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STMicroelectronics Announces Results of Additional Repurchases of its Zero Coupon Senior Convertible Bonds due 2010 |
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The repurchases occurred in off-market transactions outside the United States and pursuant to an open purchase order on the French market. The open purchase order on the French market and outside the United States expired pursuant to its terms on Thursday, May 27, 2004 at the close of the French trading day. The repurchased 2010 Bonds will be cancelled in accordance with the terms of the Indenture pursuant to which they were issued. To date, ST has repurchased a nominal amount of $1,980,330,000 of its 2010 Bonds, representing 92.28% of the total amount of 2010 Bonds issued, for a total amount paid of $1,548,296,019. Because the principal amount outstanding of the 2010 Bonds following these repurchases is below 10% of the original aggregate principal amount of the 2010 Bonds issued, ST intends to redeem the remaining outstanding 2010 Bonds at the original issue price plus accrued original issue discount through the date of redemption in accordance with the terms of the Indenture pursuant to which they were issued. The repurchases completed on May 19, 2004 and between May 21, 2004 and May 27, 2004 are expected to result in a loss on extinguishment of convertible debt of approximately $4.1 million that will be incurred in the second quarter of 2004. ST anticipates that these latest Bond repurchases will reduce interest expense by an additional $4.4 million for the remainder of 2004. Statements made in this press release that are not historical facts, including statements regarding our estimates of loss on extinguishment of convertible debt and additional interest expense are forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward looking statements are based on management's current expectations, views, beliefs and assumptions as of the date of this release. Such statements are subject to various risks and uncertainties, which may cause actual results and performance of the Company's business to differ materially and adversely from the forward-looking statements. Factors which may cause actual results or performance to differ materially from the expectations of the Company or its management include changes in interest rates and accounting treatment of securities. A more detailed discussion of these factors and the other "Risk Factors", which may from time to time materially and adversely affect the Company, is contained in our Annual Report on Form 20-F of the year ended December 31, 2003, which was filed with the SEC on May 4, 2004 (the "Form 20-F"), which may be updated from time-to-time. The Company's Risk Factors were most recently updated from the Form 20-F in its report on Form 6-K as filed with the SEC on May 12, 2004. About STMicroelectronics STMicroelectronics is a global leader in developing and delivering semiconductor solutions across the spectrum of microelectronics applications. An unrivalled combination of silicon and system expertise, manufacturing strength, Intellectual Property (IP) portfolio and strategic partners positions the Company at the forefront of System-on-Chip (SoC) technology and its products play a key role in enabling today's convergence markets. The Company's shares are traded on the New York Stock Exchange, on Euronext Paris and on the Milan Stock Exchange. In 2003, the Company's net revenues were $7.24 billion and net earnings were $253 million. Further information on ST can be found at www.st.com. |
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