Bell Micro Terminates Tender Offer

Bell Microproducts terminates tender offer for its convertible subordinated notes due 2024

January 20, 2007

1 Min Read
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SAN JOSE, Calif. -- Bell Microproducts Inc.(NASDAQ:BELM) (the "Company") today announced that it has terminated its previously announced tender offer to purchase any and all of its $109,850,000 outstanding 3 3/4 % Convertible Subordinated Notes, Series B due 2024 (the "Notes"). The tender offer expired at 9:00 a.m., New York City time, on January 18, 2007. All Notes tendered during the tender offer will be returned to their prior holders at no cost to the holders and no cash will be paid.

On December 13, 2006, the Company announced an offer to purchase any and all of the Notes at a purchase price equal to $1,000.00 per $1,000.00 of the principal amount of the Notes, plus accrued and unpaid interest to, but excluding, the date on which the Notes are purchased. After evaluating available options, the Company determined that termination of the tender offer was the most prudent course of action. Pursuant to the Offer to Purchase and the terms of the Company's previously announced consent solicitation for the Notes, it will be obligated to pay holders of the Notes their pro rata share of a special interest payment equal to 8.5% of the outstanding aggregate principal amount of the Notes. The Company believes it has access to sufficient resources to fund the special interest payment and its working capital requirements. In exchange for the special interest payment and an initial consent fee equal to 0.50% of the aggregate principal amount of the Notes, the Company received a permanent waiver of the SEC periodic reporting covenants and obligation to deliver such periodic reports to the trustee under the indenture.

Bell Microproducts

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