By Stephanie N. Rotondo
Seattle, March 1 – Silicon Laboratories Inc. priced $350 million of five-year convertible senior notes at par to yield 1.375% with an initial conversion premium of 37.5% late Tuesday, the company said in a press release.
The deal came in the middle of the 1.25% to 1.75% yield talk and on the rich end of the 32.5% to 37.5% premium talk.
Goldman Sachs & Co. LLC and Wells Fargo Securities LLC are the joint bookrunners on the Rule 144A deal.
There is a $50 million over-allotment option, the company said in a press release.
Conversions will be settled with cash, stock or a combination, at the company’s option. The initial conversion rate is 10.7744 shares per each $1,000 of notes. That is the equivalent $92.81 a share.
The company can call the issue on or after March 6, 2020 if the stock hits a 130% price hurdle. Prior to Dec. 1, 2021, holders can convert their notes in certain circumstances. After that date, the notes are convertible at any time.
There is standard dividend and takeover protections.
About $72.5 million of the proceeds will be used to repay in full an existing credit facility. Remaining proceeds will be used for general corporate purposes.
Silicon Laboratories is an Austin, Texas-based fabless semiconductor company.
| Issuer: | Silicon Laboratories Inc.
|
| Securities: | Convertible senior notes
|
| Amount: | $350 million
|
| Greenshoe: | $50 million
|
| Maturity: | March 1, 2022
|
| Bookrunners: | Goldman Sachs & Co. LLC and Wells Fargo Securities LLC
|
| Coupon: | 1.375%
|
| Price: | Par of $1,000
|
| Yield: | 1.375%
|
| Conversion premium: | 37.5%
|
| Conversion price: | $92.81
|
| Conversion rate: | 10.7744 shares
|
| Provisional call: | On or after March 6, 2020, if the stock hits a 130% price hurdle
|
| Contingent conversion: | Yes, prior to Dec. 1, 2021
|
| Net share settlement: | Yes
|
| Pricing date: | Feb. 28
|
| Settlement date: | March 6
|
| Distribution: | Rule 144A
|
| Talk: | 1.25% to 1.75% yield, up 32.5% to 37.5%
|
| Stock symbol: | Nasdaq: SLAB
|
| Stock price: | $67.50 as of Feb. 28 close
|
| Market capitalization: | $2.88 billion
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
