Jabil Circuit, Inc. (NYSE:JBL) announced today the pricing of its
offering of $312.0 million 7.75% senior unsecured notes
due 2016 (the "Offering"). These notes will be issued at a price of
96.143% of par resulting in a yield to maturity of 8.50%.
Jabil anticipates that the closing of the Offering will occur on August
11, 2009. Jabil intends to use all or a portion of the net proceeds from
the Offering to pay for any of its $300.0 million 5.875% Senior Notes
due July 15, 2010 (the "5.875% Senior Notes") that are tendered pursuant
to Jabil's cash tender offer, announced on July 28, 2009, along with the
accrued interest and associated fees and expenses. Jabil will use any
remaining net proceeds for general corporate purposes, which may include
repaying any borrowings that may then be outstanding under the revolving
credit portion of its $1.2 billion amended and restated five-year
unsecured credit facility (the "Credit Facility"), reducing the amount
funded under its $200.0 million foreign asset-backed securitization
program expiring on March 18, 2010, reducing the amount funded under its
$250.0 million U.S. asset-backed securitization program expiring on
March 17, 2010, investing in investment grade securities, funding open
market purchases, redemption or repayment of any untendered 5.875%
Senior Notes or repaying a portion of the borrowings under the term
portion of the Credit Facility.
J.P. Morgan Securities Inc., Citigroup Global Markets Inc. and RBS
Securities Inc. acted as joint book-running managers for the Offering.
The Offering was made only by means of a prospectus, copies of which may
be obtained from J.P. Morgan Securities Inc., 270 Park Avenue, 8th
Floor, Attention: Syndicate Desk, New York, New York 10017,
212-834-4555. An electronic copy of the prospectus is available from the
Securities and Exchange Commission's website at http://www.sec.gov.
This press release shall not constitute an offer to sell or a
solicitation of an offer to purchase any of these securities, and shall
not constitute an offer, solicitation or sale in any state or
jurisdiction in which such an offer, solicitation or sale would be
unlawful.
About Jabil
Jabil is an electronic product solutions company providing
comprehensive electronics design, manufacturing and product management
services to global electronics and technology companies. Jabil common
stock is traded on the New York Stock Exchange under the symbol, "JBL".
Further information is available on the company's website: jabil.com.
This news release contains forward-looking statements, including
statements regarding the completion of the Offering, the principal
amount, interest rate and maturity date of the notes being offered in
such Offering and our use of the net proceeds from the Offering. These
statements are based on current expectations, forecasts and assumptions
involving risks and uncertainties that could cause actual outcomes and
results to differ materially. These risks and uncertainties include, but
are not limited to: our inability, due to market conditions or other
reasons, to complete the Offering with the economic terms described
below, if at all; our inability, for whatever reason, to close on the
tender offer; and other risks, relevant factors and uncertainties
identified in our Annual Report on Form 10-K for the fiscal year ended
August 31, 2008, subsequent Reports on Form 10-Q and Form 8-K and our
other securities filings. Jabil disclaims any intention or obligation to
update or revise any forward-looking statements, whether as a result of
new information, future events or otherwise.
Jabil Circuit, Inc., St. Petersburg
Investor & Media Contact:
Beth
Walters, Vice President, Investor Relations, 727-803-3349
investor_relations@jabil.com
