Macom greenshoe lifts 0.25% convertible notes due 2026 to $450 million

By Marisa Wong

Los Angeles, April 7 – The underwriters of Macom Technology Solutions Holdings Inc.’s recent offering of 0.25% convertible notes due 2026 exercised $50 million of their $60 million greenshoe, bringing the total issue size to $450 million, according to a press release.

Macom priced $400 million of the five-year convertible notes after the market close on March 22 at par with a coupon of 0.25% and an initial conversion premium of 40%, as previously reported.

Pricing came at the cheap end of talk for a coupon of 0% to 0.25% and at the midpoint of talk for an initial conversion premium of 37.5% to 42.5%, according to a market source.

Barclays was the bookrunner for the Rule 144A offering.

The notes are non-callable until March 20, 2024 and then subject to a 130% hurdle.

They are putable upon a fundamental change.

The notes will be settled in cash, shares or a combination of both.

Net proceeds will be used for the partial repayment of outstanding term loans and for general corporate purposes.

Macom Technology is a Lowell, Mass.-based semiconductor company.

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