Vishay talks $525 million seven-year convertibles to yield 2.5% to 3%, up 22.5% to 27.5%

By Abigail W. Adams

Portland, Me., June 6 – Vishay Intertechnology, Inc. plans to price $525 million of seven-year convertible senior notes after the market close on Thursday with price talk for a coupon of 2.5% to 3% and an initial conversion premium of 22.5% to 27.5%, according to a market source.

J.P. Morgan Securities LLC is the sole bookrunner for the Rule 144A offering, which carries a greenshoe of $75 million.

The notes are non-callable. There is dividend and takeover protection.

Conversions will be settled in cash, shares or a combination of both at the company’s option.

Proceeds from the notes will be used to repurchase a portion of the company’s outstanding convertible debentures due 2040, 2041 and 2042 through individually negotiated agreements with a limited number of holders, according to a company news release.

Remaining proceeds will be used for general corporate purposes.

Vishay Intertechnology is a Malvern, Pa.-based manufacturer of semiconductors.

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