Infineon convertible yields 5%, up 46%

By Sara Rosenberg

New York, April 30 - Infineon Technologies AG priced a convertible subordinated bond to yield 5% with a 46% initial conversion premium, according to a market source.

The deal was launched earlier Wednesday at a size of €700 to €725 million.

No further details on the final pricing terms were available as Prospect News went to press.

The convertible was issued through Infineon's Dutch subsidiary Infineon Technologies Holding BV.

Goldman Sachs International and Morgan Stanley & Co. International Ltd. are bookrunners on the deal. Morgan Stanley & Co. International will be stabilization manager for the offering.

The deal will be convertible into up to 69 million shares of Infineon Technologies AG, the equivalent cash amount at the company's discretion or an equivalent cash/share combination, according to a news release.

The convertible matures in seven years, is non-callable for the first three years and callable thereafter subject to a 125% provisional call.

"Infineon is issuing the convertible bond to benefit from the attractive financing opportunity available in the current convertible market given the low interest rate and high volatility environment. The proceeds of the issue will serve to further strengthen Infineon's financial position and support the long-term strategy of Infineon Technologies AG," a news release said.

Infineon is a Munich, Germany provider of semiconductors and complete system solutions.

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