LONDON, Sept 8 (Reuters) - German chipmaker Infineon Technologies said it planned to repay early an issue of 2010 exchangeable bonds after the prinicipal amount outstanding fell below 43 million euros ($61.9 million).
The company has set Sept. 29 as the date to redeem principal plus accrued interest of the bonds remaining out of an original issue of 215 million euros of 1.375 percent subordinated bonds exchangeable into American Depositary Shares of Qimonda AG , it said in a statement on Monday.
The redemption is Infineon's latest step to free its balance sheet from debt, with one-year refinancing needs estimated to be as much as 850 million euros as recently as May.
It moved to cut that amount in May by buying back 53 million euros of convertible and exchangeable notes, including this issue, at 75 percent of face value.
The chipmaker then in July negotiated the sale of its wireline communication unit for 250 million euros and earlier this month raised 725 million euros in a capital hike.
Infineon said at the time of the rights issue it planned to use the proceeds to repay convertible and exchangeable bonds due in 2010.
(Editing by David Cowell) ($1=.6950 Euro) Keywords: INFINEON/REDEMPTION (jane.baird@thomsonreuters.com, Reuters Messaging: jane.baird.reuters.com@reuters.net, +442075422471) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
The company has set Sept. 29 as the date to redeem principal plus accrued interest of the bonds remaining out of an original issue of 215 million euros of 1.375 percent subordinated bonds exchangeable into American Depositary Shares of Qimonda AG , it said in a statement on Monday.
The redemption is Infineon's latest step to free its balance sheet from debt, with one-year refinancing needs estimated to be as much as 850 million euros as recently as May.
It moved to cut that amount in May by buying back 53 million euros of convertible and exchangeable notes, including this issue, at 75 percent of face value.
The chipmaker then in July negotiated the sale of its wireline communication unit for 250 million euros and earlier this month raised 725 million euros in a capital hike.
Infineon said at the time of the rights issue it planned to use the proceeds to repay convertible and exchangeable bonds due in 2010.
(Editing by David Cowell) ($1=.6950 Euro) Keywords: INFINEON/REDEMPTION (jane.baird@thomsonreuters.com, Reuters Messaging: jane.baird.reuters.com@reuters.net, +442075422471) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
© 2009 AFX News
