Business
Cohu Announces Closing of Private Upsized Offering of $287,500,000 of 1.50% Convertible Senior Notes Due 2031
Strengthens balance sheet to fuel long-term growth at an attractive rate Structured efficiently with approximately five-year maturity and $27.1758 effective
About this update from Cohu, Inc.
[{"type":"text","content":"\n\nStrengthens balance sheet to fuel long-term growth at an attractive rate\n\n\n\nStructured efficiently with approximately five-year maturity and $27.1758 effective conversion price per share\n\n\n\n POWAY, Calif.--(BUSINESS WIRE)--\nCohu, Inc. (NASDAQ: COHU) (“Cohu” or the “Company,” “we” or “our”), a global supplier of equipment and services optimizing semiconductor manufacturing yield and productivity, today announced the closing of $287,500,000 aggregate principal amount of 1.50% Convertible Senior Notes due 2031 (the “notes”), including the exercise in full of the option granted to the initial purchasers to purchase up to $27,500,000 aggregate principal amount of notes.\n\n\nCohu President and CEO, Luis A. Müller, said: \"We are excited to have successfully completed our convertible bond offering, which enhances our strategic flexibility and supports our growth initiatives. In addition, by entering into a capped call transaction, we are taking steps to limit potential shareholder dilution, reflecting our ongoing commitment to maximizing value for our investors.\"\n\n\nThe offering of the notes was structured with a 1.50% interest rate, an approximately five-year maturity and an initial conversion price of approximately $27.1758 per share, representing an initial conversion premium of approximately 32.50% above the closing price of $20.51 per share of Cohu’s common stock on September 24, 2025.\n\n\nIn connection with the offering of the notes, Cohu entered into capped call transactions, which increase the effective conversion price of the notes to a 100% premium above the closing price of Cohu’s common stock on September 24, 2025. The capped call transactions are expected to reduce dilution or offset any cash payments Cohu is required to make in excess of the principal amount of converted notes, as the case may be, upon a conversion of the notes up to a stock price of $41.02 per share of Cohu’s common stock, subject to adjustment under the terms of the capped call transactions.\n\n\nUpon conversion, Cohu will satisfy its conversion obligations by paying cash up to the aggregate principal amount of the notes to be converted and paying and/or delivering, as the case may be, cash, shares of its common stock or a combination of cash and shares of its common stock, in respect of the remainder, if any, of its conversion obligat...