STMicroelectronics to redeem $750 million of convertibles due 2022

By Taylor Fox

Chicago, July 28 – STMicroelectronics NV plans to redeem all its outstanding $750 million 0% convertible bonds due 2022 (ISIN: XS1638064953) on Aug. 27 at their principal amount, according to a news release.

Holders of the convertible bonds are entitled to exercise their right to convert their bonds into shares, cash or a combination of shares and cash by reference to the prevailing conversion price of $20.54 per share.

STMicroelectronics plans to settle any such exercise through the payment of cash and delivery of shares. For delivery of shares in connection with the net share settlement, the company will utilize a certain number of existing shares repurchased under the share buyback program that was launched Nov. 5, 2018.

The redemption will be funded with proceeds of new convertible bonds.

STMicroelectronics is a Geneva-based electronics and semiconductor company.

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