- Semtech (NASDAQ:SMTC) announces pricing of $250 million of its 4.00% convertible senior notes due 2028 in a private placement.
- The notes will bear interest at a rate of 4.00% per annum, payable semiannually in arrears on May 1 and November 1 of each year, beginning on May 1, 2024.
- The notes will mature on November 1, 2028.
- The convertible notes will have an initial conversion rate of 49.0810 shares of Semtech’s common stock per $1,000 principal amount of the convertible notes.
- The initial conversion price represents a premium of about 27.5% to the $20.37 per share closing price of Semtech’s common stock on October 19, 2023.
- The sale of the notes is expected to close on or about October 26, 2023 and is expected to result in $242.5 million in net proceeds to the company.
- The company intends to use the net proceeds, together with cash on hand, in order to prepay term loans outstanding under the company’s senior credit facilities and to pay any fees and expenses relating thereto or to the placement.
- In a separate release, the company reaffirms its third fiscal quarter 2024 outlook for net sales in the range of $190.0 million to $210.0 million vs. the consensus of $200.55 million and non-GAAP diluted loss per share in the range of $0.22 to $0.09 vs. the consensus of -$0.15, previously provided on September 13, 2023.
- Shares were trading up 1.75% to $16.26 in early trading on Friday.
Semtech prices $250 million of convertible senior notes offering; reaffirms fiscal Q3 outlook
