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Silicon Labs Announces Pricing of Private Offering of $500 Million of 0.625% Convertible Senior Notes
AUSTIN, Texas, May 27, 2020 /PRNewswire/ -- Silicon Labs (NASDAQ: SLAB) today announced the pricing of its offering of $500 million aggregate principal amount
About this update from Silicon Laboratories, Inc.
[{"type":"text","content":"AUSTIN, Texas, May 27, 2020 /PRNewswire/ -- Silicon Labs (NASDAQ: SLAB) today announced the pricing of its offering of $500 million aggregate principal amount of 0.625% Convertible Senior Notes due 2025 (the \"notes\") in a private placement to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended. Silicon Labs also granted the initial purchasers a 13-day option to purchase up to an additional $35 million aggregate principal amount of additional notes, solely to cover over-allotments, if any. The offering is expected to close on June 1, 2020, subject to customary closing conditions.\n\n \n \n \n \n \n \n\n \nThe notes will be Silicon Labs' general unsecured obligations. The notes will bear interest semi-annually in cash payable on June 15 and December 15 at a rate of 0.625% per year beginning on December 15, 2020, and will mature on June 15, 2025, unless repurchased, redeemed or converted at an earlier date. The notes will not be redeemable at Silicon Labs' option prior to June 20, 2023. Silicon Labs may redeem all or any portion of the notes, at Silicon Labs' option, on or after June 20, 2023, if the last reported sale price of Silicon Labs common stock has been at least 130% of the conversion price then in effect for at least 20 trading days during any 30 consecutive trading day period (including the trading day immediately preceding the date on which Silicon Labs provides notice of redemption) at a redemption price equal to 100% of the principal amount of the notes to be redeemed, plus accrued and unpaid interest. \nThe notes will be convertible at an initial conversion rate of 8.1498 shares of Silicon Labs common stock per $1,000 principal amount of the notes, which is equivalent to an initial conversion price of approximately $122.70 per share, which represents an approximately 35% conversion premium to the closing sale price of $90.89 per share of Silicon Labs common stock on NASDAQ on May 27, 2020. Prior to the close of business on the business day immediately preceding March 15, 2025, the notes will be convertible at the option of the holders only upon the satisfaction of certain conditions and during certain periods. Thereafter, until the close of business on the business day immediately preceding the maturity date, the notes will be convertible at the option of the holders at...