SAN JOSE -- Flextronics is commencing a cash tender offer to purchase up to $200 million worth of its outstanding long-term notes and is proposing changes to existing terms that would permit the EMS company to retire up to $500 million worth of other debt early.

In a statement, Flextronics said it would buy up to $100 million of the aggregate principal amount outstanding of its 6.5% senior subordinated notes due 2013 and a like amount of its 6.25% senior subordinated notes due 2014.

Flextronics is also asking note holders to approve an amendment that, among other things, permits the company to retire or otherwise acquire any portion of its outstanding 1% convertible subordinated notes due Aug. 1, 2010, and permits Flextronics to make additional restricted payments of up to $500 million in addition to any other restricted payments permitted.

The move is not unlike those of its competitors. Earlier this year, Celestica retired about $150 million worth of debt, a move that will save the company more than $10 million a year in interest.