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Silicon Labs Announces Proposed Private Offering of $500 Million of Convertible Senior Notes
AUSTIN, Texas, May 27, 2020 /PRNewswire/ -- Silicon Labs (NASDAQ: SLAB) today announced that it plans to offer, subject to market and other conditions, $500
About this update from Silicon Laboratories, Inc.
[{"type":"text","content":"AUSTIN, Texas, May 27, 2020 /PRNewswire/ -- Silicon Labs (NASDAQ: SLAB) today announced that it plans to offer, subject to market and other conditions, $500 million principal amount of its Convertible Senior Notes due 2025 (the \"notes\") through a private offering to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended. Silicon Labs expects to grant the initial purchasers a 13-day option to purchase up to an additional $35 million principal amount of additional notes, solely to cover over-allotments, if any.\n\n \n \n \n \n \n \n\n \nThe interest rate, initial conversion rate and other terms of the notes will be determined by negotiations between Silicon Labs and the initial purchasers of the notes. In certain circumstances and during certain periods, the notes may be converted into cash, shares of Silicon Labs' common stock, or a combination of cash and shares of Silicon Labs' common stock, at Silicon Labs' election.\nSilicon Labs plans to use approximately $310 million of the net proceeds from the offering of the notes to repay in full all amounts outstanding under Silicon Labs' existing credit facility. Silicon Labs also plans to use a portion of the net proceeds from the offering of the notes to fund the repurchase of a portion of Silicon Labs' outstanding 1.375% convertible senior notes due 2022 (the \"2022 notes\") through individually privately negotiated transactions (each, a \"note repurchase transaction\") concurrently with the offering of the notes. The terms of each note repurchase transaction will depend on several factors, including the market price of Silicon Labs' common stock and the trading price of the 2022 notes at the time of each such note repurchase transaction. Silicon Labs expects that some or all of the holders of the 2022 notes that sell their 2022 notes may purchase shares of Silicon Labs' common stock concurrently with or shortly after the pricing of the notes to close out hedging transactions they have entered into with respect to the 2022 notes. This activity could increase (or reduce the size of any decrease in) the market price of Silicon Labs' common stock and increase the initial conversion price of the notes.\nThe offering is being made to qualified institutional buyers pursuant to Rule 144A under the Securities Act, as amended. Neither the notes n...