Vishay holders may put back 3.625% convertibles

By Jennifer Chiou

New York, June 25 - Vishay Intertechnology, Inc. announced that holders of its $500 million of 3.625% convertible subordinated notes due 2023 may require the company to repurchase the notes at par on Aug. 1.

The Malvern, Pa., maker of electronic components also said that it has amended its revolving credit facility to provide an additional $125 million three-year term loan commitment.

Vishay said it intends to fund the purchase price from about $250 million of cash on hand, from borrowings under the revolving credit facility and from the $125 million term loan.

"The repayment of the convertible notes will reduce our debt and strengthen our balance sheet. Last June, our board of directors determined to waive our right to settle the principal amount of the notes in common stock. By settling the option in cash, we eliminated the need to issue almost 50 million shares of common stock," Richard Grubb, Vishay's chief financial officer, said in a news release.

Holders must deliver a purchase notice to U.S. Bank, NA (215 761-9395), the paying agent, by July 29.

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