Subordinated Notes. The tender offer related to the Senior Subordinated Notes was oversubscribed and Sensata Technologies accepted for purchase a pro rata portion of the Senior Subordinated Notes
tendered. The aggregate principal amount accepted for repurchase totaled 44.3 million ($58.4 million at the closing foreign exchange rate of $1.317 to 1.00) representing approximately 12.0% of the outstanding Senior Subordinated
Notes. Sensata Technologies paid $50.7 million ($40.7 million for the Senior Notes and 7.6 million for the Senior Subordinated Notes) to settle the tender offers and retire the debt on April 1, 2009.
In addition, during the three months ended June 30, 2009,
Sensata Technologies agreed to purchase certain 9% Senior Subordinated Notes having a principal value of 10.0 million ($14.1 million at the closing exchange rate of $1.41 to 1.00). Sensata Technologies paid $5.1 million (3.6
million) to settle the transaction and retire the debt on May 25, 2009.
In conjunction with these transactions, during the three months ended June 30, 2009, Sensata Technologies wrote off debt issuance costs of $5.3 million and recorded a gain in Currency translation
gain/(loss) and other, net of $120.1 million.
During 2008, Sensata Technologies repurchased outstanding 9% Senior Subordinated Notes totaling 17.4 million (or $22.4 million at the date of repurchase). Sensata Technologies paid $6.7 million (5.3 million) to settle the
transactions and retire the debt. In conjunction with these transactions, Sensata Technologies wrote off $0.7 million of debt issuance costs during 2008 and recorded a net gain in Currency translation gain/(loss) and other, net of $15.0 million.
Capital Lease and Other Financing Obligations
The Company operates in leased
facilities with terms generally ranging up to ten years. The lease agreements frequently include options to renew for additional periods or to purchase the leased assets and generally require that the Company pay taxes, insurance and maintenance
costs. Depending on the specific terms of the leases, the Companys obligations are in two forms: capital leases and operating leases. Rent and operating lease expense was $4,719, $7,462 and $6,383 for the years ended December 31, 2009,
2008 and 2007, respectively.
In December 2005,
the Predecessor completed a sale-leaseback of its facility in Attleboro, Massachusetts. The term included a 20-year lease agreement for a new facility at the site to be used to consolidate operations remaining in Attleboro and was recorded as a
capital lease. The capital lease will mature in 2026. The capital lease obligation outstanding is $29,258 and $29,860 as of December 31, 2009 and 2008, respectively.
In February 2008, the Companys Malaysian operating subsidiary signed a series of agreements to sell and leaseback the
land, building and certain equipment associated with its manufacturing facility in Subang Jaya, Malaysia. The transaction, which was valued at 41.0 million Malaysian Ringgit (or $12.6 million based on the closing date exchange rate), closed
during the three months ended June 30, 2008 and was accounted for as a financing transaction. Accordingly, the land, building and equipment remains on the consolidated balance sheet and the cash received was recorded as a liability as a
component of Capital lease and other financing obligations. As of December 31, 2009 and 2008, the outstanding liability is $11,006 and $11,432, respectively.
In February 2009, the Company entered into a lease amendment for the factory building and facilities located in
Changzhou, China. The amendment resulted in a new lease which was classified as a capital lease as of the modification date. The capital lease will mature in October 2016, at which time the title will transfer to the Company. The capital lease
obligation outstanding as of December 31, 2009 is $1,001.