Semtech Prices $350 Mln Convertible Senior Notes Offering

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(RTTNews) - Semtech Corp. (SMTC), a high-performance semiconductor, announced on Wednesday the pricing of its $350 million aggregate principal amount of 0% convertible senior notes due 2030.

The sale is expected to close on or about October 10.

The company planned to use the proceeds to exchange about $219 million of its 1.625% convertible notes due 2027 and $61.95 million of its 4.00% convertible notes due 2028, repay $56.3 million in term loans, and fund capped call transactions to reduce dilution.

The company said that the offering is expected to generate about $340.2 million in net proceeds.

The initial purchasers have an option to buy an additional $52.5 million in notes by October 15.

The notes will not bear regular interest and will be convertible at an initial rate of 9.8964 shares per $1,000, equivalent to a conversion price of $101.05 per share, a 42.5% premium to the October 7 closing price.

The capped call transactions set a $141.82 per share cap, reflecting a 100% premium.

The notes mature in 2030, are not redeemable before October 20, 2028, and are guaranteed by Semtech's domestic subsidiaries.

In the pre-market trading, 1% lesser at $70.20 on the Nasdaq.