Exhibit 99.1
News Release
KEMET Announces Proposed Convertible Senior Notes Offering
Greenville, South Carolina (December 13, 2007) - KEMET Corporation (NYSE:KEM) today announced its intention to offer, subject to market and other conditions, approximately $125 million aggregate principal amount of convertible senior notes due 2027, to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended. In addition, KEMET expects to grant the initial purchaser a 30 day option to purchase up to an additional $25 million principal amount of the notes. The terms of the notes to be offered will be determined by negotiations between KEMET and the initial purchaser of the notes. KEMET intends to use the net proceeds from the offering to fund future acquisitions, if any, and for general corporate purposes. KEMET considers acquisitions from time to time and has commenced preliminary discussions for an acquisition of a complementary business that had revenues and net income in excess of approximately $85 million and $5 million, respectively, for the year ended December 31, 2006, and revenues and net income in excess of approximately $40 million and $2 million, respectively, for the six months ended June 30, 2007. There is no assurance that any such contemplated acquisitions will be completed.
The notes being offered and any common stock issuable upon conversion of the notes have not been registered under the Securities Act of 1933, as amended, or any state securities laws, and may not be offered or sold in the United States absent registration under, or an applicable exemption from, the registration requirements of the Securities Act of 1933, as amended, and any applicable state securities laws.
This announcement shall not constitute an offer to sell or a solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful.
Safe harbor statement
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended. These statements can be identified by the use of forward-looking terminology, including “may,” “believe,” “will,” “expect,” “anticipate,” “estimate,” “plan,” “intend,” and “forecast,” or other similar words. Statements contained in this press release are based upon information presently available to us and assumptions that we believe to be reasonable. We are not assuming any duty to update this information should those facts change or should we no longer believe the assumptions to be reasonable.
These statements are subject to risks and uncertainties, including without limitation, general market conditions, the market for the company’s securities, the performance of the company’s business and other risks detailed from time-to-time in the company’s filings with the Securities and Exchange Commission. There is no assurance that KEMET will sell the notes or on what terms.
KEMET Corporation applies world-class service and quality to deliver industry-leading, high-performance capacitance solutions to its customers around the world. KEMET offers the world’s most complete line of surface-mount and through-hole capacitor technologies across tantalum, ceramic, aluminum (organic and electrolytic), film and paper dielectrics. KEMET’s common stock is listed on the New York Stock Exchange under the symbol KEM. Additional information can be found at http:www.kemet.com.
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