23 March 2021
MACOM proposes offering of $400m of convertible senior notes
MACOM Technology Solutions Inc of Lowell, MA, USA (which makes semiconductors, components and subassemblies for analog RF, microwave, millimeter-wave and photonic applications) says that it intends to offer (subject to market and other conditions) $400m worth of convertible senior notes due 2026. The notes will be offered and sold to persons reasonably believed to be qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933 (as amended). MACOM also expects to grant the initial purchaser of the notes an option to purchase, within a 13-day period from, and including, the date of original issuance of the notes up to an additional $60m of the notes.
The notes will be senior unsecured obligations of MACOM and will mature on 15 March 2026, unless earlier repurchased, redeemed or converted. MACOM will settle conversions by paying or delivering (as applicable), cash, shares of its common stock or a combination of cash and shares of its common stock, at MACOM’s election. The final terms of the notes (including the interest rate, the initial conversion rate and certain other terms of the notes) will be determined at the pricing of the offering.
MACOM intends to use the net proceeds of the offering for partial repayment of outstanding term loans.