By Jennifer Chiou and Rebecca Melvin
New York, May 9 - Vishay Intertechnology Inc. announced the pricing of $150 million of 30-year convertible debentures after the market close Monday to yield 2.25% with an initial conversion premium of 12.5%.
Pricing came in the middle of talk of 2% to 2.5% with an initial conversion premium of 10% to 15%.
J.P. Morgan Securities LLC was the bookrunner for the Rule 144A offering.
In addition to ordinary interest, beginning on May 15, 2021, contingent interest will accrue in certain circumstances related to the trading price of the debentures.
The securities will initially be convertible into cash, shares of Vishay stock or a combination, at Vishay's option, at an initial conversion rate of 52.5659 shares of common stock per $1,000 principal amount of debentures. This represents an initial conversion price of $19.02 per share.
The senior debentures will be non-callable for 10 years and then provisionally callable subject to a 150% price hurdle. There are no puts.
Settlement is anticipated on May 13.
Proceeds are to be used for share repurchases and general corporate purposes.
Malvern, Pa.-based Vishay makes semiconductors and electronic components.
| Issuer: | Vishay Intertechnology Inc.
|
| Issue: | Convertible debentures
|
| Amount: | $150 million
|
| Maturity: | 2041
|
| Coupon: | 2.25%
|
| Bookrunner: | J.P. Morgan Securities LLC
|
| Conversion premium: | 12.5%
|
| Conversion price: | $19.02
|
| Conversion ratio: | 52.5659 shares
|
| Calls: | From May 20, 2021 onwards, provisionally subject to 150% price hurdle
|
| Price talk: | 2% to 2.5%, up 10% to 15%
|
| Pricing date: | May 9
|
| Settlement date: | May 13
|
| Distribution: | Rule 144A
|
| Stock symbol: | NYSE: VSH
|
| Stock reference price: | $16.91 at close May 9
|
| Market capitalization: | $2.8 billion
|
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