News

STMicroelectronics Reports Redemption of LYONs

October 10, 2004 by Jeff Shepard

STMicroelectronics Inc. (ST, Geneva, Switzerland) announced that the company will redeem all of its remaining outstanding Liquid Yield Option™ Notes (LYONs) on November 12, 2004, at a redemption price equal to $888.96 per $1,000 principal amount. The redemption price is comprised of $784.84 principal amount at issuance plus the accrued original issue discount calculated through the date of the redemption of $104.12.

The residual nominal amount of the currently outstanding LYONs is $8,103,000, or 0.9% of the initial total amount of LYONs issued. Unless the company defaults on payment of the redemption price, the original issue discount on the remaining outstanding LYONs, if any, will cease to accrue on and after November 12, 2004, the redemption date. The LYONs may continue to be converted at any time before the close of business on November 12, 2004. Based on the amount outstanding, if all the remaining holders of the LYONs choose to convert their LYONs into common shares before November 12, 2004, 213,044 ST common shares would be issued. A notice of redemption is being mailed to all registered holders of the LYONs.