By Abigail W. Adams
Portland, Me., June 8 – Vishay Intertechnology Inc. priced an upsized offering of $600 million of seven-year convertible notes with a coupon of 2.25% and an initial conversion premium of 27.5%, according to a company news release.
Pricing came richer than 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 has no greenshoe. The initial size of the deal was $525 million with a greenshoe of $75 million.
The notes are non-callable. They are puttable upon a fundamental change. There is dividend protection.
Conversions will be settled in cash, shares or a combination of both at the company’s option.
Net proceeds are expected to be $584 million.
Proceeds will be used to repurchase $220 million of the principal amount of its 2.25% convertible notes due 2040 and $69 million of the principal amount of its 2.25% convertible notes due 2042 through individually negotiated agreements with a limited number of holders, according to the news release.
Vishay Intertechnology is a Malvern, Pa.-based manufacturer of semiconductors.
| Issuer: | Vishay Intertechnology Inc.
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| Securities: | Convertible senior notes
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| Amount: | $600 million
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| Greenshoe: | None
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| Maturity: | June 15, 2025
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| Bookrunners: | J.P. Morgan Securities LLC
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| Coupon: | 2.25%
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| Price: | Par
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| Conversion premium: | 27.5%
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| Conversion price: | $31.49
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| Conversion rate: | 31.7536
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| Call options: | Non-callable
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| Put options: | Upon a fundamental change
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| Pricing date: | June 7
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| Settlement date: | June 12
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| Talk: | Coupon of 2.5% to 3% and an initial conversion premium of 22.5% to 27.5%
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| Stock symbol: | NYSE: VSH
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| Stock price: | $24.70
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| Market capitalization: | $3.14 billion
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