Inphi greenshoe raises 1.125% convertible note sale to $230 million

By Tali Rackner

Norfolk, Va., Dec. 8 – Underwriters for Inphi Corp.’s 1.125% convertible senior notes due Dec. 1, 2020 exercised their over-allotment option in full, adding an additional $30 million, according to an 8-K filing with the Securities and Exchange Commission.

The company priced an upsized $200 million of the convertibles on Dec. 2.

As previously reported, joint bookrunners were Morgan Stanley & Co. LLC and J.P. Morgan Securities LLC. The lead manager was Stifel, Nicolaus & Co. Inc.

The notes are non-callable with no puts. They have takeover protection and will be settled in cash, shares or a combination of cash and shares.

In connection with the pricing of the notes, Inphi entered into privately negotiated capped call transactions with some of the initial purchasers of the notes. The cap price of the capped call transactions will initially be $52.06 per share, which boosts the initial conversion premium from the issuer’s perspective to 75%.

About $15.5 million of the proceeds will be used to pay the cost for the capped call transactions. The rest of the proceeds will be used for general corporate purposes, including potential acquisitions and other strategic transactions.

Santa Clara, Calif.-based Inphi is an analog and mixed signal semiconductor company serving communications, data center and computing.

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