SOURCE: Kulicke & Soffa

February 21, 2006 17:11 ET

Kulicke & Soffa Retires $75 Million of Debt

WILLOW GROVE, PA -- (MARKET WIRE) -- February 21, 2006 --Kulicke & Soffa Industries, Inc. (K&S) (NASDAQ: KLIC) today announced that it has closed the previously announced transactions to retire $75.0 million in principal amount of its outstanding 0.5% Convertible Subordinated Notes due 2008 (the "Notes"). The Company exchanged 48 shares of its common stock and cash for each $1,000 principal amount of Notes.

Maurice Carson, vice president and CFO of K&S, summarized the transactions, "The number of shares issued was slightly less than the 49-to-1 ratio the note holders were entitled to receive under the conversion terms of the Notes. The 3.6 million newly issued shares will not impact diluted earnings per share, as this number of shares was already included in the calculation. The transactions included an aggregate cash payment of $26.7 million, including accrued interest. We are not planning to exchange any more of our outstanding notes at this time."

Mr. Carson said, "As a result of these transactions, the Company's long-term debt decreased by $75.0 million and shareholders' equity increased by $42.7 million. We also expect to record a pretax gain on the early extinguishment of the Notes of approximately $4.4 million during the second fiscal quarter ending April 1, 2006."

He concluded, "This exchange was an attractive opportunity to retire debt at a discount and strengthen our balance sheet. These transactions demonstrate our commitment to improving our capital structure while minimizing dilution for current shareholders."

About Kulicke & Soffa

Kulicke & Soffa (NASDAQ: KLIC) is the world's leading supplier of semiconductor wire bonding assembly equipment. We believe K&S is the only major supplier to the semiconductor assembly industry that provides customers with semiconductor assembly equipment along with the complementing packaging materials that contact the surface of the customer's semiconductor devices. The ability to provide these critical, assembly related products is unique to Kulicke & Soffa, and allows us to develop system solutions to the new technology challenges inherent in assembling and packaging next-generation semiconductor devices. Kulicke & Soffa's web site address is

Caution Concerning Forward Looking Statements

In addition to historical statements, this press release contains statements relating to future events and our future results. These statements are "forward looking" statements within the meaning of the Private Securities Litigation Reform Act of 1995, and include, but are not limited to, statements that relate to our future capital structure, note exchange transactions, dilution of shareholders, and development of new products. While these forward looking statements represent our judgments and future expectations concerning our business, a number of risks, uncertainties and other important factors could cause actual developments and results to differ materially from our expectations. These factors include, but are not limited to: the risk of failure to successfully manage our operations; the risk that anticipated orders may not materialize or that orders received may be postponed or canceled, generally without charges; the risk that anticipated sales of the test businesses will not be consummated; the volatility in the demand for semiconductors and our products and services; the risk that we may not be able to develop and manufacture new products and product enhancements on a timely and cost effective basis; acts of terrorism and violence; overall global economic conditions; risks, such as changes in trade regulations, currency fluctuations, political instability and war, associated with a substantial foreign customer and supplier base and substantial foreign manufacturing operations; potential instability in foreign capital markets; and the factors listed or discussed in Kulicke and Soffa Industries, Inc. 2005 Annual Report on Form 10-K and our other filings with the Securities and Exchange Commission. Kulicke & Soffa Industries is under no obligation to (and expressly disclaims any obligation to) update or alter its forward looking statements whether as a result of new information, future events or otherwise.

Contact Information

  • Company Contact:
    Michael Sheaffer
    fax: 215-784-6167
    Email Contact