Nashville, Aug. 1 - Vishay Intertechnology Inc. sold $450 million of 20-year convertible notes at par to yield 3.625% with a 60% initial conversion premium.
The offering priced at the cheap end of guidance which put the yield at 3.125% to 3.625% with a 60% to 65% initial conversion premium.
Wachovia Corp., Banc of America Securities and JPMorgan are joint lead managers of the Rule 144A deal.
Vishay plans to use $130 million of proceeds to pay down its revolving credit facility, $176.6 million to redeem the General Semiconductor 5.75% convertible notes and $97.4 million to purchase a portion of its 0% convertible notes. And remaining proceeds will be used for general corporate purposes.
Terms of the new deal are:
Issuer: Vishay Intertechnology Inc.
| Issue: | Convertible subordinated notes
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| Lead managers: | | Wachovia, Banc of America Securities, JPMorgan
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| Co-manager: | Comerica/Fleet
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| Amount | $450 million
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| Greenshoe: | $50 million
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| Maturity: | Aug. 1, 2023
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| Coupon: | 3.625%
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| Price: | Par
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| Yield: | 3.625%
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| Conversion premium: | 60%
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| Conversion price: | $21.28
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| Conversion ratio: | 46.9925
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| Call: | Non-callable for 7 years
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| Put: | In years 5, 7, 10 and 15, in cash or stock
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| Ratings: | Moody's: B2
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| S&P: B+
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| Price talk: | 3.125-3.625%, up 60-65%
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| Pricing date: | July 31, after the close
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| Settlement: | Aug. 11
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| Distribution: | Rule 144A
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