Business
Cohu Announces Upsize and Pricing of 1.50% Convertible Senior Notes Offering
Opportunistic capital raise with proceeds used to enhance strategic flexibility A portion of the proceeds to be used to purchase capped calls intended to
About this update from Cohu, Inc.
[{"type":"text","content":"\n\nOpportunistic capital raise with proceeds used to enhance strategic flexibility\n\n\n\nA portion of the proceeds to be used to purchase capped calls intended to offset any share dilution up to a 100% premium to the last reported sale price per share of Cohu’s common stock on the date of pricing\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 pricing of $260.0 million aggregate principal amount of 1.50% convertible senior notes due 2031 (the “Notes”) in a private offering to persons reasonably believed to be qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”). Cohu also granted the initial purchasers of the Notes an option to purchase up to an additional $27.5 million aggregate principal amount of the Notes, for settlement by (and including) October 3, 2025. The aggregate principal amount of the offering was increased from the previously announced offering size of $200.0 million (or $230.0 million if the initial purchasers exercise their option to purchase the option in full). The offering of the Notes is expected to close on September 29, 2025, subject to customary closing conditions.\n\n\nThe Notes\n\n\nThe Notes will be Cohu’s senior unsecured obligations. The Notes will mature on January 15, 2031, unless earlier converted, redeemed or repurchased. The Notes will bear interest at a rate of 1.50% per year, payable semi-annually in arrears on January 15 and July 15 of each year, beginning on January 15, 2026.\n\n\nPrior to the close of business on the business day immediately preceding October 15, 2030, noteholders will have the right to convert their Notes only upon the occurrence of certain events. On or after October 15, 2030, noteholders may convert all or any portion of their Notes at any time at their election until the close of business on the second scheduled trading day immediately preceding the maturity date. Upon 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 sh...