indie Semiconductor greenshoe ups 4.5% convertibles to $160 million

By Wendy Van Sickle

Columbus, Ohio, Nov. 21 – Underwriters for indie Semiconductor Inc.’s five-year convertible notes fully exercised their $20 million greenshoe, resulting in a total deal size of $160 million, according to an 8-K filing with the Securities and Exchange Commission.

As previously reported, the company priced an upsized $140 million of the notes on Nov. 16 with a coupon of 4.5% and an initial conversion premium of 30%.

Pricing came at the midpoint of talk for a coupon of 4.25% to 4.75% and at the rich end of talk for an initial conversion premium of 25% to 30%, according to a market source.

Goldman Sachs & Co. LLC was bookrunner for the Rule 144A offering.

The initial size of the offering was $125 million with a greenshoe of $18.75 million.

The notes are non-callable until Nov. 20, 2025 and then subject to a 130% hurdle.

They are putable upon a fundamental change.

There is takeover protection.

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

Concurrently, the company repurchased 1.1 million shares for $7.4 million.

The company had planned to repurchase up to $25 million in stock but reduced the amount due to strong demand from long-only investors.

The company’s board has authorized the repurchase of up to $50 million in common stock or warrants to purchase common stock.

Net proceeds of $154.5 million will be used for the concurrent share repurchase and general corporate purposes, which may include additional stock repurchases or acquisitions.

Purchasers of the notes included funds managed by Soros Fund Management LLC, Lord Abbett and Polar Capital.

indie Semiconductor is an Aliso Viejo, Calif.-based automotive semiconductor company.

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