Semtech Corporation announced the pricing of a $350 million offering of 0% convertible senior notes due 2030, in a private placement to qualified institutional buyers under Rule 144A.
The offering consists of $350 million principal, with an initial conversion rate of 9.8964 shares per $1,000, equivalent to a conversion price of approximately $101.05 per share. The notes bear no interest and are senior unsecured obligations.
Net proceeds of about $340.2 million will be used to exchange approximately $219 million of existing 1.625% convertible senior notes due 2027, $61.95 million of 4.00% convertible senior notes due 2028, and to repay $56.3 million of term loans under the company’s senior credit facilities.
The transaction reduces debt, improves liquidity, and provides flexibility for future capital needs, supporting Semtech’s ongoing portfolio rationalization and growth initiatives.
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