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SiTime Corporation Announces Pricing of Upsized Offering of $1.2 Billion of Convertible Senior Notes
SiTime Corporation Announces Pricing of Upsized Offering of $1.2 Billion of Convertible Senior
About this update from Sitime Corporation
[{"type":"text","content":" SiTime Corporation (“SiTime”) (NASDAQ: SITM), the Precision Timing company, today announced the pricing of its underwritten offering (the “Offering”) of $1.2 billion aggregate principal amount of 0% Convertible Senior Notes due 2031 (the “Notes”). The aggregate principal amount of the Offering was increased from the previously announced offering size of $1.1 billion. The sale of the Notes to the underwriters is expected to close on May 22, 2026, subject to customary closing conditions. SiTime also granted the underwriters of the Notes a right to purchase, within a 13-day period beginning on, and including, the date on which the Notes are first issued, up to an additional $150 million aggregate principal amount of Notes, solely to cover over-allotments, if any. The Notes will be general unsecured obligations of SiTime and will not bear regular interest and the principal amount of the Notes will not accrete. The Notes will mature on June 15, 2031, unless earlier converted, redeemed or repurchased. SiTime estimates that the net proceeds from the Offering will be approximately $1.17 billion (or approximately $1.32 billion if the underwriters exercise their over-allotment option in full), after deducting the underwriters’ discounts and commissions and estimated Offering expenses payable by SiTime. SiTime expects to use the net proceeds from the Offering (i) to pay for a portion of the cash consideration of the acquisition of certain assets related to the timing business of Renesas Electronics Corporation as announced on February 4, 2026 (the “Acquisition”), (ii) to pay the $108.0 million cost of the capped call transactions described below and (iii) the remainder, if any, for general corporate purposes, which may include working capital, operating expenses, capital expenditures and general and administrative expenses. If the underwriters exercise their over-allotment option, SiTime expects to use a portion of the net proceeds from the sale of the additional Notes to enter into additional capped call transactions and the remainder for general corporate purposes as described above. Noteholders may convert all or any portion of their Notes at their option at any time prior to the close of business on the business day immediately preceding March 15, 2031 only if one or more specific conditions are met. On or after March 15, 2031 until t...