Silicon Labs details conversion, redemption for 0.625% notes due 2025

By William Gullotti

Buffalo, N.Y., June 21 – Silicon Laboratories Inc. reported converting the majority of its 0.625% convertible senior notes due 2025 ahead of its June 20 par call, according to an 8-K filing with the Securities and Exchange Commission.

As previously reported, holders were entitled to redeem their convertibles into shares of the company’s common stock at a rate of 8.198 shares per $1,000 principal amount, which is equivalent to a conversion price of $121.98 per share.

Holders converting prior to the June 16 conversion deadline also received an additional 0.4101 shares per $1,000 principal amount, as called for by the June 1, 2020 indenture. The company planned to settle the conversions with a combination of shares plus cash in lieu of any fractional shares.

As of the conversion deadline, Silicon Labs received conversion notices from the holders of 99.74% of the notes, representing $533.6 million outstanding principal amount. As a result, the company paid $533.6 million in cash and issued 919,897 shares of common stock to the converting holders, as well as $47,000 in lieu of fractional shares.

The remaining $1.4 million outstanding principal amount was redeemed at par plus accrued interest.

Silicon Labs is an Austin, Tex.-based semiconductor company.

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