Infineon to sell €1 billion convertibles

New York, Jan. 8 - Infineon Technologies AG said it is selling a €1 billion offering of five-year convertible bonds.

The Munich, Germany-based company said the sale is in parallel with an offering of 40 million shares of Infineon's stock by Siemens Nederland NV, according to a filing with the Securities and Exchange Commission.

Infineon is selling the convertible through its Dutch unit Infineon Technologies Holding BV.

The bonds will be convertible into stock or cash or a combination at Infineon's option.

The securities have three years of call protection and are callable after that subject to a 115% provisional call.

Goldman Sachs International is bookrunner for the transaction which is being placed with institutional investors outside the U.S. under Regulation S. Pricing was expected late Tuesday.

Infineon says it will have more than €250 million of cash at the end of the first quarter of the current year but is selling the bond to "benefit from the attractive financing opportunity provided by the current convertible market given the low interest rate and high volatility environment."

Proceeds will be used to "support the long-term strategy" of Infineon, the company said in the SEC filing.

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