Harman International Announces Pricing for Tender Offer for Its 7.125% Notes Due 2007
WASHINGTON--June 26, 2006--Harman International Industries, Incorporated announced today the reference yield and purchase price for its previously announced tender offer for any and all of its outstanding 7.125% Notes due 2007. The Company is conducting the offer in accordance with the Offer to Purchase, dated June 9, 2006. The offer will expire at 5:00 p.m., New York City time, on Wednesday, June 28, 2006, unless extended or earlier terminated.Under the terms of the offer, for each $1,000 principal amount of notes tendered and accepted for payment, the Company has offered to pay a price intended to result in a yield equal to: (i) the yield to maturity of the specified U.S. Treasury reference security (as measured at 2:00 p.m., New York City time, on the second business day before the day the offer expires), plus (ii) the specified fixed spread. The table below specifies the reference yield, fixed spread and purchase price per $1,000 principal amount for the 7.125% Notes due 2007.
Purchase Price
Fixed Spread per $1,000
Reference (in basis Principal
CUSIP Title of Securities Yield points) Amount
--------- --------------------- --------- ------------ ---------------
413086AD1 7.125% Notes due 2007 5.388% 25 $1,008.95
The offer is conditioned on satisfaction of the general conditions described in the Offer to Purchase. The offer is not conditioned on a minimum principal amount of notes being tendered.
The Company will pay the purchase price plus accrued and unpaid interest for any notes it purchases in the offer in same-day funds on the first business day after the date the offer expires, or as soon thereafter as practicable.
Tendered notes may be withdrawn prior to, but not after, the expiration time. Under certain circumstances as more fully described in the Offer to Purchase, the Company may terminate the offer before the expiration time. The Company can give no assurance as to the principal amount of notes that will be tendered and accepted for payment in the tender offer.
On June 22, 2006, the Company announced that it will redeem all of the 7.125% Notes due 2007 that remain outstanding after the expiration of the tender offer. The redemption date for the 7.125% Notes has been set for July 24, 2006.
Bear, Stearns & Co. Inc. and Citigroup Global Markets Inc. are the Dealer Managers for the tender offer. JPMorgan Chase Bank, N.A. is the Depositary and D.F. King & Co., Inc. is the Information Agent. This news release is neither an offer to purchase nor a solicitation of an offer to sell the notes. The offer is made only by the Offer to Purchase, dated June 9, 2006, and the information in this news release is qualified by reference to the Offer to Purchase and related Letter of Transmittal. Persons with questions regarding the tender offer should contact Bear, Stearns & Co. Inc. toll-free at (877) 696-2327 or call collect at (212) 272-5112 or Citigroup Global Markets Inc. toll-free at (800) 558-3745. Requests for any tender offer documents should be directed to D.F. King & Co., Inc. toll-free at (800) 859-8511.
Harman International Industries, Incorporated (www.harman.com) is a leading manufacturer of high-quality, high-fidelity audio products and electronic systems for the automotive, consumer and professional markets. The Company's stock is traded on the New York Stock Exchange under the Symbol: HAR.
Note: Except for historical information contained herein, the matters discussed are forward-looking statements within the meaning of Section 21E of the Securities Exchange Act. You should not place undue reliance on these statements. We base these statements on particular assumptions that we have made in light of our industry experience, as well as our perception of historical trends, current market conditions, current economic data, expected future developments and other factors that we believe are appropriate under the circumstances. These statements involve risks and uncertainties that could cause actual results to differ materially from those suggested in the forward-looking statements, including but not limited to the effect of changes in consumer confidence, a rise in interest rates affecting consumer spending, automobile industry sales and production rates, the loss of one or more significant customers, including our automotive customers, model-year changeovers and customer acceptance in the automotive industry, our ability to satisfy contract performance criteria, availability of key components to the products we manufacture, competitive products, fluctuations in currency exchange rates, the outcome of pending or future litigation and other claims, labor disputes at our facilities and those of our customers or common carriers, general economic conditions and other risks detailed in filings made by Harman International with the Securities and Exchange Commission.